GE Capital Bank joins Wells Fargo to stop funding and lending to gun shops
General Electric has been informing gun shop owners that the company will no longer be providing lending and financial services to them, the Wall Street Journal reports.
GE Capital is noting that the decision comes in response to the Sandy Hook shooting and that firearms companies will need to seek financial support elsewhere.
Immediately after the shooting Cerberus Capital Management LP said it would try to sell Freedom Group Inc., the gun company it owns, which manufactures Remington, Bushmaster, Marlin and H&R.
The owner of Duncan’s Outdoor Store in Bay City, Michigan went public with his letter that states GE has come to the “difficult decision” to stop providing financial services to his business.
The WSJ report says they are not alone.
A spokeswoman for Wells Fargo & Co. said bank officials decided to exit gun financing nearly a decade ago. Bank of America Corp., which got out of the business in 2008, didn’t respond to requests for comment.
A spokeswoman for Citigroup Inc. said the bank doesn’t finance loans for firearms.
The U.S. gun market brought in about $11.7 billion in sales last year, according to IBIS World. Additionally, financing is merely a “marginal activity” in the industry so GE’s actions shouldn’t have a huge impact on the gun market, WSJ.com reports.
But that’s not to say gun shops won’t feel it as more large banks refuse to provide lending services.
“Your options are very limited by being in our business,” said Rex McClanahan, co-owner of Buds Gun Shop in Lexington, Ky.
“Smaller lenders have helped fill the gap. Last July, Randy Frazier opened a new division of his direct-marketing business called Gun Financing, promising on its website to arrange loans for ‘hottest firearms.’ Mr. Frazier said his audience is young men with spotty credit seeking high-end rifles and equipment for sport shooting,” the Wall Street Journal report adds.
GE Capital is apparently reconsidering its relationship to firearms companies following the Sandy Hook shooting.
Earlier this month, Glenn Duncan, owner of Duncan’s Outdoor Store in Bay City, Mich., claims he received a letter from GE Capital Retail Bank announcing its “difficult decision” to stop providing financial services to his business. Other gun shops have received similar notices, the Journal notes.
Actually, Williams Sonoma just temporarily pulled all their pressure cookers from the shelves to honor those hurt/killed in Boston…we’ve literally gone insane. (and I don’t mean figuratively)
Peg: That’s the radio report I referred to ….
Someone else will fund them. This is total nonsense. As someone jokingly remarked on the radio this morning, do we now need to stop funding companies that make pressure cookers? Remember, it’s the shooter, not the gun.