BATON ROUGE — In a move reflecting growing concerns about financial institutions’ practices, Dr. John C. Fleming, Louisiana’s Treasurer, has announced his recommendation against approving Bank of America as an authorized fiscal agent for the state. This decision, rooted in Louisiana Revised Statutes (LRS) 49:317 and 320, comes amid allegations that the bank has been engaging in discriminatory practices.
“As Treasurer, I have recommended that Bank of America not be approved as an authorized fiscal agent in the State of Louisiana per LRS 49:317 and 320. This decision was not entered into lightly but was made because there is evidence that Bank of America is deliberately denying banking services to customers and potential customers (de-banking) of religious organizations, gun manufacturers, fossil fuel producers and othersbased simply on their political perspectives and activities, not because of any bank policy or law violations, ” he said via an emailed statement.
Dr. Fleming’s sentiment highlights that Bank of America has been accused of selectively denying banking services to customers and potential clients based on their affiliations with religious organizations, gun manufacturers, fossil fuel producers and other entities deemed controversial due to their political or social stances. These actions, according to Fleming, are not justified by any specific bank policies or legal violations but are instead driven by ideological biases.
“Since the 1960s, the people of the United States have made it clear that discrimination against fellow Americans is unacceptable,” Dr. Fleming stated. “It appears that Bank of America, among other financial institutions, has revived this disgraceful practice.”
Representatives from Bank of America disagree with Fleming’s assessment of their lending practices. “The representations about us are factually incorrect,” Bank of America spokesman, Bill Halldin told Biz New Orleans. “Religious views are not a factor in any account closing decision. In fact, Bank of America provides services to about 120,000 non-profits associated with religious organizations around the country. These incorrect allegations were raised to us by a number of state officials earlier this year and we provided a detailed response on May 15 to those officials, including Treasurer Fleming,” he said.
Halldin clarified that the bank has banking and investing relationships with approximately 120,000 faith-based clients in the U.S. The bank also supports these institutions through employee efforts, including nearly 250,000 volunteer hours and $6 million in matching grants from the Bank of America Foundation in 2023. Halldin emphasized that religious views do not influence account decisions. Recent allegations to the contrary, raised by state officials earlier this year, have been addressed in a detailed response provided to the Treasury office on May 15.
The Treasurer’s recommendation signals a significant stance against what he describes as discriminatory financial practices and sets a precedent for how the state of Louisiana approaches the selection of authorized fiscal agents. The decision could potentially impact the bank’s involvement in state financial matters if it is upheld by relevant state authorities.
