WASHINGTON — Republican lawmakers are locked in a policy standoff over whether to punish big banks like Citigroup and Bank of America for curtailing ties with the gun industry in the wake of recent mass shootings.

That divide holds true even in gun-friendly Texas, which plays host in Dallas this week to the National Rifle Association’s annual convention.

Some Texas GOP'ers, such as Rep. Louie Gohmert of Tyler, want to cancel government contracts with financial institutions that are backing away from the firearms market. But others, while angry at the banks, are wary about intruding upon a private entity’s business decisions.

It’s a high-caliber collision between two fundamental Republican tenets: gun rights and free-market sensibilities.

“I’m a strong supporter of the Second Amendment,” said Dallas Rep. Jeb Hensarling, a Republican who leads the House Financial Services Committee. “But to have the government punish companies or banks for their corporate policies strikes me as a uniquely bad idea.”

The Texas GOP’s hearty embrace of gun rights will be on full display this week.

Sens. John Cornyn and Ted Cruz and Gov. Greg Abbott are among the high-profile politicos who will join President Donald Trump in addressing the thousands of people slated to attend the NRA confab at the Kay Bailey Hutchison Convention Center downtown.

The meeting comes at a critical moment in the nation’s gun debate.

1 / 6Rep. Jeb Hensarling, R-Dallas, said that "to have the government punish companies or banks for their corporate policies strikes me as a uniquely bad idea." (Zach Gibson / Special Contributor) 2 / 6Rep. Louie Gohmert, R-Tyler, said that "any time a corporate giant decides it's time to participate in eroding or taking away constitutional rights, that's a real problem."(Nathan Hunsinger / Staff Photographer) 3 / 6Sen. John Cornyn, R-Texas, said, "I don't like what the banks are doing because they ought to be basing their decisions on economics, not on social policy. But they have a right to do it."(Erin Schaff / The New York Times) 4 / 6Rep. Lamar Smith (left), R-San Antonio, said that "if Citibank or any other entities are going to try to engage in political advocacy themselves, then those of use of who patronize Citibank have every right to express our displeasure."(Susan Walsh / The Associated Press) 5 / 6Rep. Roger Williams, R-Austin, said that he doesn't agree with what the banks are doing but that he doesn't "think it's any place for government to get involved."(Vernon Bryant / Staff Photographer) 6 / 6Sen. John Kennedy, R-La., has pushed for a strong response to the banks, saying there should not be "red banks and blue banks."(J. Scott Applewhite / The Associated Press)

Deadly shootings in Sutherland Springs, Las Vegas and Parkland, Fla., have spurred Congress to pass legislation by Cornyn that aims to strengthen background checks. That measure, for instance, penalizes federal agencies that don't report key records to a national database system.

Business response to mass shootings

The business community also has stepped in, thrilling some Americans and irking others.

Outdoor retailers responded, restricting who can buy guns and ammunition. As did car rental companies and other institutions, ending their relationships with the NRA. As did a few big banks, which have particular sway as lenders used by businesses of all types.

Citigroup's consumer division, Citibank, announced in March that it would require retail clients to put age restrictions and other limits on gun sales. A top Bank of America executive soon followed by pledging that the bank would not "underwrite or finance military-style firearms."

Bank of America is the second-largest bank, by asset size, in Texas and the U.S., according to the Texas Department of Banking and S&P Global Market Intelligence. Citigroup, meanwhile, is the 11th-largest bank in Texas by asset size and fourth-largest in the U.S.

In other words, they are plenty big enough to get the attention of pro-gun conservatives.

“Anytime a corporate giant decides it’s time to participate in eroding or taking away constitutional rights, that’s a real problem,” Gohmert said. “We don’t have to reward companies with our business that are trying to take away Second Amendment rights.”

Canceling contracts

The Texan joined several other House Republicans, including San Antonio Rep. Lamar Smith, in writing a letter last month to the General Services Administration to request cancellation of a $700 billion contract with Citigroup to help implement a federal charge card program.

The letter, which could portend similar pushback against Bank of America, described Citigroup’s gun effort as a “flagrant attempt to undermine our fundamental rights.”

“If Citibank or any other entities are going to try to engage in political advocacy themselves, then those of use of who patronize Citibank have every right to express our displeasure,” Smith said, explaining that the federal government is one of the bank’s customers.

Other Republicans have gone even further, justifying government intervention by citing the industry's reliance on bailouts and other federal support.

Louisiana Sen. John Kennedy is pushing for the GOP to ignore deregulation legislation that would boost the banks, explaining that there should not be "red banks and blue banks." He's also pressed the Federal Reserve on whether it could stop the banks' gun actions.

But the banks have not backed down.

A Citigroup spokesman told Politico last month that its policy is "designed to prevent firearms from getting into the wrong hands." Bank of America chief executive Brian Moynihan defended its stance last month, saying "we have to help," according to the Charlotte Observer.

Chris Cox, executive director of the NRA Institute for Legislative Action, takes the stage to speak on the second day of the Republican National Convention on July 19, 2016, in Cleveland. The NRA holds its annual convention in Dallas this week. (Smiley N. Pool / Staff Photographer)

Resisting punishment

Some Republicans in Texas and beyond have also resisted the call to punish the banks.

Austin Rep. Roger Williams, a lifetime NRA member, said he doesn’t “agree with what the banks are doing.” But he added that a “great thing about the capitalistic system” is that “you can pick and choose who you want to do business with.”

“I don’t think it’s any place for government to get involved,” said Williams, a member of the House Financial Services Committee.

Hensarling, the Dallas Republican, echoed that point, saying that “corporations can have cultures.” He added that it “could be a slippery slope if government further intrudes upon our financial institutions, further intrudes into the boardroom.”

And Cornyn, the Texas senator, said “consumers have a right to decide where they want to bank” and “hopefully that will sort it out.” While he agreed the government is “in some senses” the banks’ consumer, he said he “would not necessarily favor the government punishing anybody.”

“I don’t like what the banks are doing because they ought to be basing their decisions on economics, not on social policy,” he said. “But they have a right to do it.”