Why BofA’s Hard Line Against Assault Rifles Hasn’t Pleased Gun Activists

Why BofA's Hard Line Against Assault Rifles Hasn't Pleased Gun Activists

An man sights a rifle in a Remington exhibition booth. Bank of America Corp.’s pledge to stop lending to firearms manufacturers isn’t enough for gun-control activists, who have turned on one of the only two U.S. banks to announce gun-related restrictions. At issue is the $43 million loan Bank of America is providing to help Remington Outdoor Co. exit bankruptcy court. The bank had pledged to stop lending to companies that make assault-style rifles for civilian use—at least in future transactions. But the financial arrangement with Remington predates the February shooting at Marjory Stoneman Douglas High School in Florida that left 17 dead. That’s where the gun control activists stepped in this week to question why the bank is continuing to do business with Remington, the owner of an assault-style rifle brand. “We are angered to learn that you have flipped on your promise to the American people,” the No Rifle Association wrote in a letter to Bank of America Chief Executive Officer Brian Moynihan on Wednesday. The liberal group said continuing with the loan just because it predates the shooting is an “excuse.” Bank of America entered into negotiations with Remington’s former parent company, controlled by Cerberus Capital Management LP, to extend the loan long before the February 14 shooting. The gunmaker announced it would file for bankruptcy two days before the shooting, then filed in late March. The Chapter 11 plan allows Remington to eliminate hundreds of millions in debt, pay most of its creditors, and turn […]

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