It seems the nation’s second largest bank is going back on its word, as according to the latest development, Bank of America is preparing to provide critical financing to an assault rifle manufacturer, Remington Outdoor.
This revelation came less than a month after the corporation announced it will stop lending money to companies that make assault-style guns for civilians.
According to the court documents, the bank is contributing the much-needed $43.2 million to the firearm manufacturers, which is reeling from a bankruptcy. In fact, in order to help Remington stand back on its feet, seven banks — including BofA — have gotten together to offer a lending package worth $193 million to the company.
Originally, banks committed to provide the almost bankrupt company with a similar credit facility, but it was later replaced by the lending package in effect. However, the plan came to a halt when BofA decided to change its policy in April.
It appears the corporation is highly indecisive whether it wants to provide services to its gun industry clients or as Anne Finucane, the vice chair for the bank said last month, it wants “to contribute in any way we can to reduce these mass shootings.”
In the aftermath of the shooting at Marjory Stoneman Douglas High School in Parkland, Florida, several companies broke ties with the National Rifle Association — and BofA became the latest private company to join the gun control movement last month.
But apparently, that didn’t last for long as Remington, which makes the Bushmaster assault-style rifle — the one used in the Sandy Hook school shooting in Connecticut in 2012— will be getting a handsome amount from the bank to save it from insolvency.
According to bankruptcy documents of the manufacturer, the bank can withdraw its participation from the lending agreement by finding another lender. But experts believe doing so will hurt the bank’s reputation and can even open it to lawsuits.
Since no representative has come forward with a statement on bank’s swift change in position, it is still unclear what made the corporation go against pledges it made last month to help prevent frequent gun rampages.
It is also important to mention about 30 other potential lenders turned their backs to Remington’s financial adviser, many of them citing firearms as the reason, which goes to show the BofA was not under any sort of compulsion to lend to the gun manufacturer — yet it apparently chose to do so.
Banner Image Credits: REUTERS/Joshua Lott