Attorney Tells Congressional Committee How Banks Targeted Family Council and Other Conservatives

Recently attorney Jeremy Tedesco, Senior Counsel and Senior Vice President of Corporate Engagement for Alliance Defending Freedom testified before a congressional committee about how big banks have targeted Family Council and other conservative organizations.

On March 6, the U.S. House of Representatives Judiciary Committee and the Select Subcommittee on the Weaponization of the Federal Government released a report indicating the federal government weaponized banks against conservatives.

The report shows that after the events of January 6, 2021, federal law enforcement officials from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and the FBI initiated multiple discussions with financial institutions to discuss ways financial institutions could share customer information with federal law enforcement outside of normal legal processes.

The U.S. Treasury Department gave banks and other financial institutions guiding “typologies” — patterns that could be used to identify suspicious people or activities — including search terms and patterns like “TRUMP” and “MAGA”, and encouraged financial institutions to comb through transactions for terms like, “Bass Pro Shops,” “Cabela’s,” and “Dick’s Sporting Goods” when looking for “Homegrown Violent Extremism.”

The report also reveals the Treasury Department provided banks and financial institutions with an analysis that listed legitimate, conservative groups such as Alliance Defending Freedom, the American College of Pediatricians, American Family Association, Eagle Forum, Family Research Council, Liberty Counsel, National Organization for Marriage, and the Ruth Institute as “Hate Groups” alongside the KKK and the American Nazi Party.

On March 7attorney Jeremy Tedesco, Senior Counsel and Senior Vice President of Corporate Engagement for Alliance Defending Freedom, told the Select Subcommittee on the Weaponization of the Federal Government how big banks have targeted other conservative organizations like Family Council.

In his remarks, Mr. Tedesco said,

JP Morgan Chase de-banked the Arkansas Family Council for being “high risk” and never provided a credible reason for canceling the account of former U.S. Sen. Sam Brownback’s organization the National Committee for Religious Freedom. And Wells Fargo denied payment processing to the pro-life group The Ruth Institute. These are some of the many instances of viewpoint-based de-banking and are likely only the tip of the iceberg.

These stories highlight the systemic risk of political and religious bias that pervades the financial industry, particularly at the largest banks and payment processors. These institutions maintain reputational risk policies that allow them unfettered discretion to punish customers who have, in their view, problematic political or religious views. Many also have prohibitions on “hate” speech and “intolerance” that require the institution to make subjective and value-based judgments on a customer’s viewpoint. Both types of policies are vague and ambiguous, sweep in broad swaths of content, chill constitutionally protected speech, and erode economic freedom.

Worse, government regulators can all too easily wield their outsized power over financial institutions to pressure them to leverage these against disfavored views—all with virtually no public accountability. Financial institutions in turn can hide behind that same shield to discriminate without ever explaining it to the customer—regardless of whether the action was prompted by government pressure.

In 2021 Family Council’s credit card processor terminated our account after designating our organization as “high risk.”

At 10:29 AM on Wednesday, July 7, 2021, our office received a terse email from our credit card processor — a company owned by JPMorgan Chase — saying, “Unfortunately, we can no longer support your business. We wish you all the luck in the future, and hope that you find a processor that better fits your payment processing needs.”

Within sixty seconds, our account was terminated and and Family Council could no longer accept donations online. We never received any further explanation concerning our abrupt, unprofessional cancelation. All we can do is speculate that our conservative principles and our public policy work might have had something to do with the decision to close our account.

You can watch Jeremy Tedesco’s full congressional testimony below or read it here.

Congressional Report Says Federal Government Weaponized Banks Against Conservative Groups

Last week the U.S. House of Representatives Judiciary Committee and the Select Subcommittee on the Weaponization of the Federal Government released a report indicating the federal government weaponized banks against conservatives.

The interim report released last Wednesday cites evidence revealing:

  • After the events of January 6, 2021, federal law enforcement officials from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and the FBI initiated multiple discussions with financial institutions to discuss ways financial institutions could share customer information with federal law enforcement outside of normal legal processes.
  • Law enforcement and private institutions shared intelligence through a web portal run by the Domestic Security Alliance Council — a partnership led by the FBI and the Department of Homeland Security.
  • The U.S. Treasury Department gave banks and other financial institutions guiding “typologies” — patterns that could be used to identify suspicious people or activities — including search terms and patterns like “TRUMP” and “MAGA”, and encouraged financial institutions to comb through transactions for terms like, “Bass Pro Shops,” “Cabela’s,” and “Dick’s Sporting Goods” when looking for “Homegrown Violent Extremism.”
  • “Americans doing nothing other than shopping or exercising their Second Amendment rights were being tracked by financial institutions and federal law enforcement.”

The report also reveals the Treasury Department provided banks and financial institutions with an analysis titled “Bankrolling Bigotry.” This analysis listed legitimate, conservative groups such as Alliance Defending Freedom, the American College of Pediatricians, American Family Association, Eagle Forum, Family Research Council, Liberty Counsel, National Organization for Marriage, and the Ruth Institute as “Hate Groups” alongside the KKK and the American Nazi Party.

The “Bankrolling Bigotry” analysis also outlines ideas on policies and laws aimed at preventing these groups from fundraising. Officials from the Treasury Department distributed this document to banks and financial institutions in January of 2021, calling it an “overview on the funding of American hate groups.”

Other outlets have reported in the past how government policies allegedly encourage banks to designate conservative organizations as posing a “high risk” or “reputational risk” — giving the banks an excuse to close their accounts.

In 2021 Family Council’s credit card processor terminated our account after designating our organization as “high risk.”

At 10:29 AM on Wednesday, July 7, 2021, our office received a terse email from our credit card processor — a company owned by JPMorgan Chase — saying, “Unfortunately, we can no longer support your business. We wish you all the luck in the future, and hope that you find a processor that better fits your payment processing needs.”

Within sixty seconds, our account was terminated and and Family Council could no longer accept donations online. All we can do is speculate that our conservative principles and our public policy work might have had something to do with the decision to close our account.

Unfortunately, other organizations have had similar experiences as well. This congressional report sheds light on how the federal government weaponized financial institutions against conservative groups.

You Can Read Entire Interim Committee Report Here.

Articles appearing on this website are written with the aid of Family Council’s researchers and writers.

Arkansas A.G. Joins Letter Addressing De-Banking

Arkansas Attorney General Tim Griffin recently joined 22 other state attorneys general in a public letter addressing the rising trend of politicized de-banking.

The letter urges proxy voting advisory firms Institutional Shareholder Service and Glass Lewis to give equal treatment and provide transparency in their advice regarding shareholder resolutions that address de-banking.

Family Council has written repeatedly about how de-banking hurts charities and conservative causes.

In 2021, our credit card processor — a company owned by Chase Bank — canceled our account with virtually no notice and no explanation.

In 2022, Chase abruptly closed the account of Ambassador Sam Brownback’s National Committee for Religious Freedom with little warning or explanation, and PayPal similarly disabled the account of a group called the Free Speech Union.

All of this prompted Arkansas and several other states to send a letter to the CEO of JPMorgan Chase expressing deep concern over the company’s pattern of de-banking conservative groups last May.

The A.G.’s letter to Institutional Shareholder Service and Glass Lewis voices similar concerns over these issues, saying,

Your companies, International Shareholder Services, Inc., and Glass Lewis & Co., provide proxy voting advice to many businesses and investors who are citizens of our States as well as to our States’ investment vehicles.

That voting advice directly impacts how our Nation’s largest companies operate. . . .

Your lack of transparency is troubling. And your voting recommendations on debanking proposals may breach your legal obligations. We seek more transparency and written assurance that you will cease any practice that violates the law, including your duty to act in the best interest of the citizens of our States, or your stated policies on recommendations.

Alliance Defending Freedom notes,

While billing themselves as viewpoint-neutral, both ISS and Glass Lewis regularly endorse shareholder resolutions for left-of-center causes such as ESG (environmental, social, and governance) and DEI (diversity, equity, and inclusion). At the same time, the firms have consistently opposed resolutions calling for transparency and internal reporting on potential instances of politically motivated de-banking—resolutions dismissed by ISS as “anti-ESG” along with nearly every other conservative proposal.

You can read the A.G.’s letter to Institutional Shareholder Service and Glass Lewis here.