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Citigroup Reverses Course on Firearms Policy Under Political Pressure

In a surprising reversal, Citigroup announced on Tuesday that it has scrapped its specific firearms policy — a move that comes amidst growing pressure from the Trump administration and broader conservative circles accusing major financial institutions of political bias.

The rollback marks a significant shift for Citigroup, which in 2018 became the first major U.S. bank to impose restrictions on clients involved in gun sales following the tragic mass shooting at Marjory Stoneman Douglas High School in Parkland, Florida. That incident, which left 17 people dead and sparked national outcry, led Citi to introduce what it called “best practices” for gun retailers using its banking services.

A Closer Look at Citi’s 2018 Firearms Policy

Citigroup’s 2018 guidelines included refusing business with retailers who:

• Sold firearms to individuals under the age of 21
• Did not require background checks
• Sold bump stocks or high-capacity magazines

These restrictions applied to a wide range of commercial clients including small businesses, large institutions, and credit card partners. However, the policy never affected individual cardholders’ transactions or personal purchases.

Citi framed the move as a risk-management decision rather than a political stance, aiming to align with growing public concern over gun violence in the United States.

Why the Sudden Reversal?

In Tuesday’s statement, Citigroup said:

“We also will no longer have a specific policy as it relates to firearms… The policy was intended to promote the adoption of best sales practices as prudent risk management and didn’t address the manufacturing of firearms.”

The bank explained the decision was influenced by “regulatory developments, recent Executive Orders, and federal legislation.” This language aligns with recent political developments — most notably, increasing Republican criticism that major financial institutions have engaged in politically motivated “de-banking.”

Political Backlash and the ‘De-Banking’ Controversy

The move follows a wave of Republican-led scrutiny accusing large financial institutions of discriminating against conservatives. The debate intensified last year when over a dozen GOP state financial officers accused Bank of America of “politicized de-banking” in an open letter. Although BoA denied the claims and insisted it had “no political litmus test,” the narrative gained momentum.

During the 2025 World Economic Forum in Davos, President Donald Trump directly challenged major banking leaders including Brian Moynihan of Bank of America and Jamie Dimon of JPMorgan Chase.

“You’ve done a fantastic job,” Trump said. “But I hope you start opening your bank to conservatives… What you’re doing is wrong.”

This high-profile criticism put additional public pressure on Wall Street institutions, many of which have since reevaluated internal policies around customer eligibility and access.

Citi Clarifies Its Commitment to Non-Discrimination

Alongside the policy reversal, Citigroup also announced revisions to its employee Code of Conduct and its external Global Financial Access Policy. The update will explicitly affirm that the bank does not discriminate based on political affiliation, mirroring protections already in place for race, religion, gender, and other categories.

This strategic messaging appears designed to shield the bank from further political backlash while also positioning it as a neutral entity in America’s growing partisan divide.

Wall Street and Gun Policy: A Complex Relationship

Citigroup’s reversal underscores the tension between corporate social responsibility and political pragmatism. While public sentiment often pushes companies to take stances on contentious issues like gun violence, those same positions can lead to political scrutiny, regulatory risk, and reputational damage.

Other institutions, such as JPMorgan Chase and Bank of America, have also faced questions over how they approach gun-related businesses. In 2019, for example, JPMorgan revealed it had reduced relationships with gun manufacturers, though it stopped short of formal restrictions.

What This Means for the Financial Sector

Citigroup’s move may signal a broader shift in how Wall Street navigates hot-button issues. With regulators increasingly influenced by political rhetoric, financial institutions may tread more cautiously in areas once governed by corporate values or risk management alone.

The long-term implications remain unclear. Some advocacy groups warn that backing away from socially responsible policies, especially in areas like gun safety, could damage public trust. On the other hand, financial institutions appear increasingly focused on appeasing political forces that have become more vocal — and more powerful.

Final Thoughts

Citigroup’s decision to roll back its firearms policy highlights the balancing act that modern financial institutions must perform — between public accountability, regulatory compliance, and political neutrality. Whether this signals a new era of caution on Wall Street or a temporary retreat remains to be seen.

What is clear: as political and cultural battles increasingly intersect with business operations, neutrality is becoming harder — and more expensive — to maintain.