WASHINGTON – Politicized debanking was on the agenda at U.S. Bank’s annual shareholder meeting Tuesday, as a proposal backed by Alliance Defending Freedom called on corporate leadership to provide transparency into the bank’s potentially discriminatory decision to abruptly close the long-held account of the Constitution Party of Idaho at the outset of last year’s election cycle.
The proposal seeks to engage U.S. Bank in adopting long-term policy changes to protect against political and religious debanking, similar to those enacted at JPMorgan Chase. However, U.S. Bank has so far ignored conservative shareholders advocating for these changes in line with fiduciary concerns. During Tuesday’s meeting, shareholders asked U.S. Bank President Gunjan Kedia three separate questions about the bank’s reticence to address debanking.
“No one should fear losing access to essential financial services because of their views,” said ADF Senior Counsel and Senior Vice President of Corporate Engagement Jeremy Tedesco. “Politicized debanking is a direct assault on the fundamental freedoms of Americans, and big banks like U.S. Bank can no longer afford to participate in it. This shareholder resolution is a critical step toward holding U.S. Bank accountable and ensuring it respects the diverse perspectives of its customers and shareholders. We’re hopeful that today’s meeting leads to future engagement with U.S. Bank on this critical topic.”
The proposal was not expected to gain widespread support by shareholders due to U.S. Bank’s opposition statement and the nearly universal lockstep voting practices of proxy advisory services ISS and Glass Lewis, as well as institutional investors BlackRock, Vanguard, and State Street. U.S. Bank will be making the final vote tally available in the next four business days.
Overall, the ADF coalition of like-minded shareholder advocates—which represents more than $250 billion in assets under management and includes Inspire Investing and American Values ETF—has filed 70 shareholder proposals at major corporations, resulting in more than 50 meetings with company representatives. The strategy has resulted in 13 policy and behavior changes at major corporations so far this year, including at Chase, Meta, Mastercard, PepsiCo, Johnson & Johnson, Walmart, Comcast, Verizon, and Morgan Stanley.
Last month, Idaho became the second state in the nation to adopt the ADF model debanking bill, joining Tennessee in prohibiting banks with over $100 billion in assets from closing accounts due to a customer’s legally protected speech, beliefs, or affiliations.
“Banks should respect everyone’s freedom to participate in the marketplace without fear of political or anti-religious bias,” said Constitution Party of Idaho Chairman Tony Ullrich. “U.S. Bank closed our bank account with no notice and virtually no explanation at the beginning of a busy political season. What I’ve realized since is that this fits with the larger pattern of politicized debanking. Huge, nationally chartered banks just close accounts and leave account holders like us guessing why. I’m standing up so this doesn’t happen to anyone else—whether they’re on the left, right, or center.”
“No American should have to worry that their bank will deny them service based on their religious or political beliefs,” added Conservative Values ETF CEO and Co-Founder William Flaig. “U.S. Bank’s decision to cancel the Constitution Party of Idaho’s account without explanation or prior notice undermines trust in financial institutions while raising significant concerns to U.S. Bank shareholders. We urge U.S. Bank to follow other large banks like JPMorgan Chase, which has recently responded to shareholders by adopting policies that protect against future debanking.”
“Banks should respect everyone’s freedom to participate in the marketplace without fear of political or anti-religious bias,” explained Inspire Investing Portfolio Manager and Director of Corporate Engagement Tim Schwarzenberger. “The resolution urges U.S. Bank to ensure that customers are not denied services based on their political or religious beliefs, a critical step toward protecting freedom of thought and expression in America’s financial system.”
Alliance Defending Freedom is an alliance-building, non-profit legal organization committed to protecting religious freedom, free speech, parental rights, and the sanctity of life.
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