Restrict gun sales, Citigroup tells its business partners

Kevin McCoy | USA TODAY

Show Caption Hide Caption Gun violence is the number one fear among students USA Today and Ipsos surveyed six hundred middle school and high school students about school gun violence. One in five say they don't feel safe in school.

Citigroup is imposing restrictions on firearm sales by its business partners, becoming the first major U.S. bank to take a financial stand in the growing national debate over gun control.

The New York-based bank this week said it is requiring its partners to bar firearm sales to customers under age 21, as well as those who have not passed a background check.

The bank is also barring clients from selling high-capacity ammunition magazines and so-called bump stocks that enable more rapid firing.

The policy will apply company-wide to Citigroup's small business, commercial and institutional clients that borrow funds, use banking services or raise capital through the bank.

Citigroup also is requiring similar compliance from business partners that issue co-brand or private label credit cards through the bank.

The banking giant currently has few business relationships with firearms manufacturers, CEO Michael Corbat wrote in a message to bank employees Thursday. Citigroup plans to have due diligence discussions with business partners involved with gun sales to ensure they comply with the new requirement.

"If they opt not to, we will respect their decision and work with them to transition their business away from Citi," he wrote, implicitly raising the possibility the bank could lose business over the new policy.

"As an avid outdoorsman and responsible gun owner, I know that some will find our policy too strict while others will find it too lenient," Corbat wrote. "We don't have the perfect solution to supporting our Constitution while keeping our children and grandchildren safe. Best practices are going to continue to change, and we understand the limitations of our efforts. But we shouldn't let that stop us from doing our part."

Students across the US demand action on guns Classrooms across America were left almost barren as tens of thousands of students walked out of their classrooms Wednesday to demand action on gun violence and school safety. It was one of the biggest student protests since the Vietnam era. (March 14)

The bank's action came just more than a month after a gunman armed with an assault-style rifle killed 17 at Marjory Stoneman Douglas High School in Parkland, Fla. The massacre spurred demands for tougher U.S. gun control by students at the school and across the nation.

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Retail giant Walmart, Dick's Sporting Goods and L.L. Bean announced new restrictions on some gun sales in recent weeks. Similarly, outdoor gear retailer REI cut off key supplier Vista Outdoor until the company "outlines a clear plan of action" on the weapons it makes.

At least two would-be rifle purchasers under age 21 have filed lawsuits, arguing that the restrictions improperly barred them from buying rifles or shotguns.

The National Rifle Association Institute for Legislative Action in February criticized moves to restrict purchases of long guns "by law-abiding adults."

Gun control that Tea Party members can support The president of Citizens for Self-Governance, Mark Meckler, says a GVRO statute is the answer to stop gun violence.

Until Citigroup's announcement, however, most U.S. financial institutions remained on the sidelines in the disagreements over gun control.

"We have waited for our grief to turn into action and see our nation adopt common-sense measures that would help prevent firearms from getting into the wrong hands," Edward Skyler, a Citigroup executive vice president, wrote in a corporate blog post in which he cited "too many" U.S. acts of gun violence.

"As a society, we all know that something needs to change. And as a company we feel we must do our part," added Skyler, who previously was a deputy to former New York City mayor Michael Bloomberg, a nationally known gun control advocate.

Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc