WASHINGTON – U.S. Senator Kevin Cramer (R-ND), a member of the Senate Banking Committee, with Senator Marco Rubio (R-FL) reintroduced the Financial Defense of Industrial Contractors (FDIC) Act, legislation to combat the political discrimination by big banks against federal contractors, including those which operate facilities on behalf of the Immigration Customs and Enforcement Agency (ICE).
“Some large banks are weaponizing their essential position in the economy to discriminate against companies who assist our immigration law enforcement operations,” said Senator Cramer. “If they would like the right to deny service to certain companies, the federal government should have the right to withdraw its taxpayer-funded guarantees.”
The FDIC Act would amend the Federal Deposit Insurance Act to remove Federal Deposit Insurance Corporation (FDIC) insurance from banks with assets over $50 billion and which refuse to provide banking services to firms with an active federal contract which are otherwise creditworthy and law-abiding. If a bank violates this standard, the FDIC Board of Directors would begin the FDIC insurance termination process pursuant to the Federal Deposit Insurance Act, including a notice of intent, FDIC board hearing, and a transition phase of up to two years. Learn more here.
Senators Cramer and Rubio first introduced this legislation in February of 2020. They are joined on this bill by Senators Tom Cotton (R-AR), Marsha Blackburn (R-TN), and Ted Cruz (R-TX).
Senator Cramer has been using his seat on the Senate Banking Committee to address concerns of discrimination against legal entities by large financial institutions. Learn more here.