It should be no surprise that a Canadian bank would be in lockstep with that country’s disdain for lawful firearm ownership. After all, Canada’s bent on confiscating lawfully owned firearms from owners who did nothing to violate the law. The outlook for personal freedoms in Canada is decidedly murkier after Canada’s ill-advised crackdown on protests against the government that led to arrests of hundreds in 2020. It seems the stereotype of Canadian “nice” isn’t holding up these days.
That’s especially true when it comes to the firearm industry.
The Royal Bank of Canada, the largest bank in Canada, holds CA$2.325 trillion (or $1.76 trillion U.S. dollars) in total assets. The RBC has a market capitalization of approximately $291 billion U.S. dollars. It’s a top global financial institution, ranked as the eighth largest bank worldwide and fifth largest in North America by market capitalization. RBC serves 17 million clients across Canada, the United States and 27 other countries, employing over 101,000 people around the globe.
RBC operates through subsidiaries in the United States, with City National Bank, which includes First American Equipment Finance, operating 79 branches in 11 U.S. states (primarily focused on commercial and private banking), RBC Wealth Management at 195 offices and RBC Capital Markets with 55 offices.
That kind of American footprint and market capital would lead some to believe that RBC would be on the leading edge of understanding rules that ban financial services discrimination in the United States. Those people would be wrong.
U.S. Gun Business Not Welcome
Nate Treadaway, CEO of Vigilant Gear, LLC, tagged NSSF in a LinkedIn post, writing, “Should I be surprised that a Canadian based bank ‘restricts’ lending (aka discriminates) to the firearms industry? Probably not. But, for the love of God, don’t solicit me first and then tell me you won’t do business because our industry. Shame on him. Shame on RBC. Shame on First American.”
Treadaway wasn’t done.
“PS — No, I don’t need any lending services today so please don’t solicit me with your lending proposals. I get 5-6 a week, but this one made it though [sic] my spam filter and thought I’d hear him out. Lesson learned,” he added.
Treadaway isn’t a “Johnny-come-lately” to the firearm industry. Previous to his role at Vigilant Gear, he was CEO of BPI Outdoors and prior to that, President & CEO of Blackpowder Products, Inc. He’s been in the firearm industry for nearly two decades. He’s seen the devastating effects of Operation Choke Point and what happened when banking discrimination was privatized by corporate banks. He was at the helm of these companies when they had to navigate the Biden administration weaponizing the Treasury Department’s Financial Crimes Enforcement Network to spy on Americans exercising their Second Amendment rights by legally purchasing firearms and ammunition.
They Should Know
So imagine his frustration when RBC’s subsidiary First American Equipment Finance reached out wanting to do business with Treadaway but spurns any business that has to do with firearms or ammunition. After all, President Donald Trump signed the Executive Order “Guaranteeing Free and Fair Banking for All Americans.” That’s the order that scrapped “woke” banking discrimination that denied financial services to the firearm and ammunition industry. The Treasury Department’s Office of the Comptroller of the Currency (OCC), with the Federal Deposit Insurance Corporation (FDIC), published a Final Rule that eliminated “reputational risk” from their supervisory programs that regulate banking and financial services in the United States. The rule prohibits the agencies from requiring, instructing or encouraging an institution to close customer accounts or take other actions on the basis of a person’s or entity’s political, social, cultural or religious views or beliefs, constitutionally protected speech or solely on the basis of politically disfavored but lawful business activities perceived to present reputation risk.
RBC may be a Canadian-based bank but that doesn’t mean they get to ignore the rules governing financial services in the United States if they want to do business here. RBC maintains an Environmental, Social and Governance policy that bars investment in RBC’s Vision Funds. In fact, RBC screens to include and exclude certain businesses “stemming from a certain principle or set of values.” That includes “Weapons.”
This isn’t the first time that RBC has gotten itself in the crosshairs of discriminating against firearm businesses and U.S.-government policies that banned their discriminatory practices.
Louisiana Gov. Jeff Landry, when he was the state attorney general and led the Louisiana State Bond Commission, pushed to disqualify RBC — along with five other national banks — from his state’s pre-approved financial institutions that could compete for $275 million in state bonds because of their discriminatory policies against firearm businesses.
Reuters reported that RBC was scrutinized by the Securities and Exchange Commission’s Texas office for illegal discrimination that violated the state’s laws that forbid the practice aimed at firearm businesses, as well as the state’s oil and gas industry. NSSF supported Texas’ Firearm Industry Nondiscrimination Act and praised Texas Gov. Greg Abbott when he signed it into law.
Not the Only Ones
It’s clear that RBC knows that discriminating against and denying financial services to the firearm industry based on “woke” policies violates the rules not just at the state level, but also the federal level. It’s a head-scratcher, then, why they’d be asking Treadaway’s Vigilant Gear to consider them as a business partner. It’s no less confusing than when NSSF reported that Ramp, another financial services partner, was courting business with Arizona-based Davidson’s, Inc., after they denied financial services to West Virginia’s Kent Cartridge Company.
That saga isn’t over. Just last week, West Virginia’s Attorney General JB McCuskey fired off letters to BILL Holdings, Inc., First Internet Bank of Indiana and Ramp, three financial service providers that allegedly denied services to Kent Cartridge.
NSSF cautioned that AG McCuskey was looking into the allegations and now he’s warning the financial service providers of the potential consequences of violating West Virginia’s FIND Act.
“The bottom-line takeaway here should be crystal clear. West Virginians cherish the right to bear arms. And their elected representatives have enshrined into law protection against discrimination aimed at firearms manufacturers, distributors, and retailers by banks and other financial institutions,” AG McCuskey wrote in the letters. “Accordingly, this Office will zealously investigate—and, when warranted, pursue legal action—to effectuate that protection and vindicate the policy choice West Virginians have made. That choice reflects an obvious desire that their fundamental right to bear arms not be unduly burdened or inhibited.”
RBC could be facing the same scrutiny if it doesn’t wake up to the fact that “woke” financial discriminatory policies won’t be tolerated.
Larry Keane is SVP for Government and Public Affairs, Assistant Secretary and General Counsel of the National Shooting Sports Foundation.