Prospect for Red and Blue Banks Act seems gloomy

Prospect for Red and Blue Banks Act seems gloomy

Published
Sen. John Kennedy (R-La.), (Photo ©2018 Doug Christian)
Sen. John Kennedy (R-La.), (Photo ©2018 Doug Christian)

ON THE HILL WITH DOUG CHRISTIAN

WASHINGTON – On Oct. 2, Republican Sen. John Kennedy of Louisiana introduced Senate bill S. 3539, known as the No Red and Blue Banks Act. The act would prevent the General Services Administration from awarding any federal contract to FDIC insured lending institutions based on “social policy considerations.”

This bill comes in the wake of the 2017 Las Vegas mass shooting when a sole perpetrator used a bump stock to turn his semi-automatic rifle into a machine gun. Citibank and Bank of America have already announced they will no longer lend to manufacturers or sellers of bump-stocks, or those who produce assault weapons for non-military purposes, sell firearms to anybody under age 21 or to anyone who has not passed a background check.

“We do not need red banks and blue banks,” Kennedy said at a Senate Banking Committee hearing in August. In that hearing, he said, “Banks have competitive advantages as a result of government. When they use that government-provided market power to implement their version of appropriate social change, they’re in effect acting as a private regulator.”

However, despite the effort Sen. Kennedy is putting into his legislation, according to Skopos Labs, this bill has a 3 percent chance of passing.

Doug Christian, Capitol Hill

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