Louisiana sends a message that the state government isn’t interested in doing business with banks that won’t lend to gun makers. The State Bond Commission backed out of a deal with JP Morgan over the bank’s policy against loans to assault rifle manufacturers, adding the institution to a practical blacklist that also includes Citibank and Bank of America.
JP Morgan was initially selected for the major bond refinancing plan, but the Commission reversed course and picked Wells Fargo due to JP’s policy when it comes to barring lending to “military-style” assault rifle manufacturers.
State Treasurer John Schroder defended the decision, saying Louisiana is not the only state that is discussing not doing business with anti-gun banks.
“I’m not selling our 2nd Amendment rights to corporate America,” said Schroder. “Are we going to allow these big corporations, bank or not, to dictate what this policy is in the state of Louisiana?”
Schroder said there currently is no official policy against doing business, right now, with anti-gun banks. He noted that a legislative push to pass a law barring business with those banks was vetoed by Governor Edwards, and said a likely future governor would not have vetoed that legislation.
Opponents of the policy say this ideologically driven move is going to cost the state a lot of money in the future. While Wells Fargo (who has no gun lender policy) agreed to match JP’s deal this time, there’s concern that future bidders will know there’s less competition.
“Three of the biggest banks to loan us money at a good rate of interest, we don’t want to do business with them?” said Louisiana Governor John Bel Edwards’ Executive Counsel Matthew Block. “All the others know that they don’t have to compete with JP Morgan and CitiBank and Bank of America.”
Block said no serious business would make the same kind of decision, and we should treat financial policy like a serious businessman would, and not a politician.
“No business would say, you know what, CitiBank, JP Morgan, Bank of America, whomever, you are willing to loan me money at a lower interest rate, but I just don’t like you guys, so I am going to go with the guy who is higher,” said Block.
