Bank of America (BAC) said it will stop loaning to gun companies that produce military-style firearms for citizens. After Citigroup (C), Bank of America is the second major lender to withdraw support to gunmakers who have faced a barrage of criticism following the Parkland’s February 14 tragedy.
The rise in shooting incidents has led to increased coercion on banks, retailers and fund managers to cut down ties with firearm producers. These protests led to several companies disassociating themselves from the NRA earlier this year.
The Charlotte-based financial services company has been a financier to Vista Outdoor, Sturm Ruger as well as Remington, which filed for bankruptcy last month. The bank has informed its clients that it does not intend to finance or underwrite military-style weapons going forward.
The company said it has received mixed reactions from its clients and that it will cooperate with those who are willing to trim down their portfolios. The lender added that there are some people who will opt for alternative courses of action.
Bank of America’s peer Citigroup announced last month that it would ask its clients to implement age restrictions on gun sales and also to stop selling high capacity magazines that make guns more powerful.
After Citigroup (C), Bank of America is the second major lender to withdraw support to gunmakers
On the other hand, Wells Fargo (WFC) remains a major financier for the gun industry and appears to be keen on maintaining its relations with the NRA. Over the past six years, Wells Fargo has helped two large American firearm companies get more than $430 million in loans and bonds. Wells Fargo, however, stated that it will work with its clients on the issue of gun safety.