Financial services company Citi is walking back its political de-banking policy and its requirement for retail clients to restrict gun sales, making it the latest large corporation to distance itself from progressive corporate governance.
Citi announced the changes Tuesday after examining its corporate policies in light of shifts to the regulatory climate and President Trump’s executive orders.
“We will update our employee Code of Conduct and our customer-facing Global Financial Access Policy to clearly state that we do not discriminate on the basis of political affiliation in the same way we are clear that we do not discriminate on the basis of other traits such as race and religion,” the banking company said in a statement.
“We also will no longer have a specific policy as it relates to firearms. Our U.S. Commercial Firearms Policy was implemented in 2018 and pertained to sale of firearms by our retail clients and partners. The policy was intended to promote the adoption of best sales practices as prudent risk management and didn’t address the manufacturing of firearms.”
Citi’s rescinded policies are both part of the environmental, social, and governance (ESG) movement in corporate America that seeks to use corporations as vehicles for progressive goals. The ESG and diversity, equity, and inclusion movements in corporate America have been in retreat since Trump returned to office and signed executive orders to aggressively combat DEI and illegal racial discrimination. Walmart, McDonald’s, Target, Verizon, Meta, and numerous other corporations have scaled back DEI commitments since Trump resoundingly won the 2024 presidential election.
Conservatives have raised the alarm about financial companies “de-banking” right-wing clients and denying them access to services because of political orientation. The practice has mostly impacted right-wing extremists, but it has spilled out into industries disfavored by the left and other conservative institutions. Republican lawmakers have also raised the alarm about cases of de-banking involving gun dealerships and religiously affiliated institutions.
The cryptocurrency industry has been particularly critical of what crypto proponents believed to be targeted and weaponized de-banking practices. But the crypto industry has also been associated with fraud, money laundering, and other illicit schemes involving criminal networks that banks look to clamp down on.
President Donald Trump called out Bank of America and JP Morgan for de-banking in January at the World Economic Forum, reigniting the debate about de-banking at the start of his second term. Both financial titans disputed Trump’s allegations and said they were proud to serve clients of all political affiliations.
In March, the Trump organization sued Capital One for alleged de-banking four years ago because of their political views, an allegation the company disputed. Several financial institutions cut ties with Trump in early 2021 following the January 6 Capitol riot and his second impeachment.
Some progressives including Senator Elizabeth Warren (D., Mass.) have also criticized large financial firms for engaging in unfair de-banking practices against formerly incarcerated individuals and poor people struggling to pay overdraft fees. Progressives have also argued the banks have too much power over the financial system and have the ability to de-bank customers with little transparency.