Jason Delgado
Chief Financial Officer Jimmy Patronis on Monday put banks on warning.
In a letter sent to Office of Financial Regulation Commissioner Russell Weigel, the statewide official called on regulators to police financial institutions that politically discriminate against specific groups.
Patronis contended that banks who withhold services for political reasons are practicing a financial form of “cancel culture.”
He called on regulators to “analyze whether a Florida-chartered bank that exhibits political discrimination toward a specific industry group is engaged in an unsound banking practice.”
He also instructed the office to determine if the practice “merits issuance of a cease-and-desist order.”
“Politically discriminatory banking practices are harmful to the economy of our state and nation,” Patronis wrote. “The banking industry has a shameful track record of denying financing to disfavored groups and we cannot allow ‘cancel culture’ to run roughshod over American enterprise.”
The letter comes after media reports detailed instances of banks withholding loans to groups such as mine operators, private prisons and firearm manufacturers.
The disenfranchised companies are often “too conservative” or not aligned with the “woke left,” Patronis wrote.
He further warned that the practice will hurt workers and families.
“An American business that is unbanked is not a business at all,” Patronis wrote. “Ultimately, the inability for certain industries to secure banking services will cost Americans jobs.”
Patronis’ letter marks the latest Republican push against “cancel culture.”
Republican Sen. Ray Rodrigues is sponsoring legislation (SB 264) that aims to diversify viewpoints in academia.
House Speaker Chris Sprowls, meanwhile, referenced “cancel culture” several times during his opening remarks as Speaker.
Cancel culture is a modern form of digital and social ostracism.
Meriam-Webster defines the practice as a halt in support of a person. In more high-profile instances, the act of canceling someone often involves a social media company banning the individual from its platform.
A copy of the letter is featured below.
2 comments
Donald Johnson
March 8, 2021 at 9:24 pm
This looks like a good non partisan policy move and warning by Jimmy Patronis.
Employees are free to walk from their jobs in banks if they don’t like dealing with all comers regardless of race, religion, political beliefs or the kinds of businesses they operate. Voting with our feet is an American tradition and a human one.
But for any business to announce they won’t do business with private prisons or miners is like refusing to serve certain races at diner counters. It is wrong. It should be exposed and prosecuted in the courts of public opinion as well as in our judicial system.
If a banker or anyone else doesn’t want to do business with certain business, they can get out of banking and out of business and run for political offices that will empower them to fight private prisons and miners to their heart’s content.
If a bank or other business red lines certain industries, what is to keep them from red lining anyone who is and thinks differently from them?
The Civil Rights Act of 1964 supposedly ended such discrimination. In the spirit of the Civil Rights act, banks should discriminate against people who don’t have good credit histories and who are in unprofitable business, but not against people who make and sell things they don’t like.
Joe De La Cruz
March 9, 2021 at 10:31 am
If a bank can decide that they don’t want to provide services to marijuana dispensaries they can decide the same with private prisons, etc.
Credit Unions are another example of banks that have requirements and limits on whom they provide their services to.
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