Banks Urged by Democratic Senators to Take Action on Gun Control

(Bloomberg) -- Gun-control activists have been ratcheting up pressure on U.S. banks this year to curb services to the firearms industry, frustrated by congressional inaction. Now, the same demands are coming from some members of Congress.

On Wednesday, a dozen Democratic senators called on financial institutions to set new guidelines for their business dealings. The lawmakers want banks to follow an example set by Citigroup Inc., which required merchants it works with to refrain from selling firearms to customers under 21 or those who haven't passed a background check. It also barred the sale of bump stocks and high-capacity magazines.

“There is a growing consensus in the private sector that companies can and should take action to address the problem of gun violence,” the senators including Brian Schatz of Hawaii and Dianne Feinstein of California wrote.

Banks haven't yet found any safe ground in the gun-control debate. Citigroup and Bank of America Corp. drew fiery responses last month from Republican lawmakers after adopting new policies for their business linked to firearms.

Read more: BofA's gun dilemma is just the start as activist pressure mounts

Meanwhile, protesters and some shareholders at Wells Fargo & Co.'s annual meeting urged it to stop providing banking services to the National Rifle Association.

--With assistance from Elizabeth Dexheimer

To contact the reporter on this story: Laura J. Keller in New York at lkeller22@bloomberg.net.

To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, David Scheer, Dan Reichl

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