Arkansas ESG Oversight Committee Blocks Financial Service

Religious Freedom,

Arkansas’ ESG Oversight Committee made headlines this week by opting to keep TD Bank Group and TD Securities on its list of financial service providers that allegedly discriminate against fossil fuel and energy companies. Other companies on the list include Goldman Sachs & Co., Goldman Sachs Group Inc, Royal Bank of Canada, RBC Capital Markets, UBS Group AG, UBS Securities, Nomura Asset Management, Nomura Securities, Credit Suisse Group AG, and Credit Suisse Securities LLC.

As corporations increasingly make decisions based on Environmental, Social, and Governance (ESG) factors, Arkansas’ lawmakers have enacted legislation addressing financial discrimination against fossil fuels and related energy companies.

While many are concerned about businesses being driven by radical environmental agendas, it’s worth pointing out the “Social” element of ESG allegedly has caused some conservative organization to have their bank accounts closed.

Family Council has written repeatedly about how politicized de-banking hurts charities, conservative causes, and people of faith.

In 2022, Chase abruptly closed the account of Ambassador Sam Brownback’s National Committee for Religious Freedom with little warning or explanation, and PayPal similarly disabled the account of a group called the Free Speech Union.

In 2021, our credit card processor — a company owned by Chase Bank — canceled our account with virtually no notice and no explanation. The only conclusion we could draw was that our conservative principles prompted the cancelation.

Recently the U.S. House of Representatives Judiciary Committee and the Select Subcommittee on the Weaponization of the Federal Government released a report indicating the federal government actually weaponized banks against conservatives following the events of January 6, 2021.

The report shows that federal law enforcement officials from the Treasury Department and the FBI quietly contacted financial institutions to discuss ways financial institutions could share customer information with federal law enforcement outside of normal legal processes.

The report further revealed the Treasury Department provided banks and financial institutions with information listing legitimate, conservative groups such as Alliance Defending Freedom, American Family Association, Family Research Council, and many others as “Hate Groups” alongside the KKK and the American Nazi Party.

In April, Arkansas Attorney General Tim Griffin signed a letter with 14 other state attorneys general asking Bank of America to come clean about its de-banking practices.

We appreciate Arkansas’ policymakers being willing to stand up for transparency and accountability at financial institutions. Nobody should have their bank account canceled because of what they believe.

Articles appearing on this website are written with the aid of Family Council’s researchers and writers.

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Arkansas A.G. Joins Letter Asking Bank of America to Come Clean About Debanking

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Earlier this month Arkansas Attorney General Tim Griffin signed a letter alongside 14 other state attorneys general asking Bank of America to come clean about its “debanking” practices.

The letter says,

Bank of America appears to be conditioning access to its services on customers having the bank’s preferred religious or political views. This is inconsistent with your bank’s promise to uphold “the highest standards of corporate governance and ethical conduct[, including] efforts to always do business the right way for [its] customers.”1 Surely Bank of America would not say that denying service to clients for exercising their civil liberties is doing “business the right way for [its] customers.”

Your discriminatory behavior is a serious threat to free speech and religious freedom, is potentially illegal, and is causing political and regulatory backlash. Your bank needs to be transparent with and assure us, its shareholders, and others that it will not continue to de-bank customers for their speech or religious exercise

The letter goes on to cite past examples of politicized debanking — and how debanking may run afoul of the law.

Family Council has written repeatedly about how de-banking hurts charities, conservative causes, and people of faith.

For example, in 2021, our credit card processor — a company owned by Chase Bank — canceled our account with virtually no notice and no explanation.

In 2022, Chase abruptly closed the account of Ambassador Sam Brownback’s National Committee for Religious Freedom with little warning or explanation, and PayPal similarly disabled the account of a group called the Free Speech Union.

Last month the U.S. House of Representatives Judiciary Committee and the Select Subcommittee on the Weaponization of the Federal Government released a report indicating the federal government actually weaponized banks against conservatives following the events of January 6, 2021.

The report shows that federal law enforcement officials from the Treasury Department and the FBI quietly contacted financial institutions to discuss ways financial institutions could share customer information with federal law enforcement outside of normal legal processes.

The U.S. Treasury Department gave banks and other financial institutions guiding “typologies” — patterns that could be used to identify suspicious people or activities — including search terms and patterns like “TRUMP” and “MAGA.”

The Treasury also encouraged financial institutions to comb through transactions for terms like, “Bass Pro Shops,” “Cabela’s,” and “Dick’s Sporting Goods” when looking for “Homegrown Violent Extremism.”

The report further revealed the Treasury Department provided banks and financial institutions with information listing legitimate, conservative groups such as Alliance Defending Freedom, American Family Association, Family Research Council, and many others as “Hate Groups” alongside the KKK and the American Nazi Party.

And last month testimony at congressional committee meetings further explained how banks and other financial institutions may abuse their power.

It is nearly impossible for a church, business, charity, or family to function in modern American society without a bank account. That’s one of the reasons why there are so many laws regulating the banking industry — and it’s part of the reason why debanking is so dangerous.

Nobody should have their bank account canceled because of what they believe.

We appreciate Attorney General Griffin’s willingness to stand up for transparency and accountability at Bank of America and in the financial industry.

Articles appearing on this website are written with the aid of Family Council’s researchers and writers.

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Attorney Tells Congressional Committee How Banks Targeted Family Council and Other Conservatives

Religious Freedom, , ,

Recently attorney Jeremy Tedesco, Senior Counsel and Senior Vice President of Corporate Engagement for Alliance Defending Freedom testified before a congressional committee about how big banks have targeted Family Council and other conservative organizations.

On March 6, the U.S. House of Representatives Judiciary Committee and the Select Subcommittee on the Weaponization of the Federal Government released a report indicating the federal government weaponized banks against conservatives.

The report shows that after the events of January 6, 2021, federal law enforcement officials from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and the FBI initiated multiple discussions with financial institutions to discuss ways financial institutions could share customer information with federal law enforcement outside of normal legal processes.

The U.S. Treasury Department gave banks and other financial institutions guiding “typologies” — patterns that could be used to identify suspicious people or activities — including search terms and patterns like “TRUMP” and “MAGA”, and encouraged financial institutions to comb through transactions for terms like, “Bass Pro Shops,” “Cabela’s,” and “Dick’s Sporting Goods” when looking for “Homegrown Violent Extremism.”

The report also reveals the Treasury Department provided banks and financial institutions with an analysis that listed legitimate, conservative groups such as Alliance Defending Freedom, the American College of Pediatricians, American Family Association, Eagle Forum, Family Research Council, Liberty Counsel, National Organization for Marriage, and the Ruth Institute as “Hate Groups” alongside the KKK and the American Nazi Party.

On March 7attorney Jeremy Tedesco, Senior Counsel and Senior Vice President of Corporate Engagement for Alliance Defending Freedom, told the Select Subcommittee on the Weaponization of the Federal Government how big banks have targeted other conservative organizations like Family Council.

In his remarks, Mr. Tedesco said,

JP Morgan Chase de-banked the Arkansas Family Council for being “high risk” and never provided a credible reason for canceling the account of former U.S. Sen. Sam Brownback’s organization the National Committee for Religious Freedom. And Wells Fargo denied payment processing to the pro-life group The Ruth Institute. These are some of the many instances of viewpoint-based de-banking and are likely only the tip of the iceberg.

These stories highlight the systemic risk of political and religious bias that pervades the financial industry, particularly at the largest banks and payment processors. These institutions maintain reputational risk policies that allow them unfettered discretion to punish customers who have, in their view, problematic political or religious views. Many also have prohibitions on “hate” speech and “intolerance” that require the institution to make subjective and value-based judgments on a customer’s viewpoint. Both types of policies are vague and ambiguous, sweep in broad swaths of content, chill constitutionally protected speech, and erode economic freedom.

Worse, government regulators can all too easily wield their outsized power over financial institutions to pressure them to leverage these against disfavored views—all with virtually no public accountability. Financial institutions in turn can hide behind that same shield to discriminate without ever explaining it to the customer—regardless of whether the action was prompted by government pressure.

In 2021 Family Council’s credit card processor terminated our account after designating our organization as “high risk.”

At 10:29 AM on Wednesday, July 7, 2021, our office received a terse email from our credit card processor — a company owned by JPMorgan Chase — saying, “Unfortunately, we can no longer support your business. We wish you all the luck in the future, and hope that you find a processor that better fits your payment processing needs.”

Within sixty seconds, our account was terminated and and Family Council could no longer accept donations online. We never received any further explanation concerning our abrupt, unprofessional cancelation. All we can do is speculate that our conservative principles and our public policy work might have had something to do with the decision to close our account.

You can watch Jeremy Tedesco’s full congressional testimony below or read it here.

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