The recent news of Bank of America being fined $250 million for engaging in illegal practices has once again raised concerns about the accountability of financial institutions.

Bank of America’s Illegal Practices:

Bank of America has been ordered to pay a substantial amount in penalties and customer compensation due to a range of illegal practices. These include double charging for insufficient funds, withholding reward bonuses, and surreptitiously opening new accounts without customers’ consent or knowledge. Unfortunately, these practices, while shocking, are not entirely surprising considering the systemic issues within the banking industry.

The Lobbyist Influence:

One reason for the lack of accountability is the influence of lobbyists representing the banking industry. During recent sessions, these lobbyists openly admitted to discriminating against legitimate and legal businesses in Arizona based on arbitrary factors. This admission suggests that discriminatory practices are not only tolerated but also defended by industry representatives. It is concerning that the state seems powerless to intervene in these matters.

Legislation Attempts:

Senator Frank Carroll (LD-28) has been actively working to address the issue by introducing legislation multiple times aimed at distancing the state of Arizona from discriminatory banking institutions. One such bill this session, SB1096, sought to prohibit public entities from entering into contracts with companies that discriminate against firearm entities and associations. Unfortunately, when the bill reached Governor Hobbs, she vetoed it, deeming it unnecessary and expressing concerns about potential financial repercussions for the state.

Broader Banking Industry Scandals:

Bank of America is not the only major bank implicated in scandals involving discriminatory practices. Wells Fargo and JPMorgan & Chase have faced significant fines for similar offenses. Wells Fargo faced allegations of targeting vulnerable communities and charging fees on dormant accounts without customers’ knowledge, while JPMorgan & Chase settled a lawsuit alleging racial discrimination in mortgage interest rates.

Discriminatory Practices Beyond Wall Street:

While the large national banks grab headlines, it is important to acknowledge that discriminatory practices exist across the entire financial services sector, including small and community banks. These practices often go unnoticed due to public perception, limited geographical reach, and smaller market share. However, the relationship banking model, often associated with smaller banks, can enable discriminatory practices through discretionary decision-making, challenging the wholesome image of “Main Street” banks.

The Call for Accountability:

In light of these recurring scandals and discriminatory practices, it is crucial for conservative lawmakers and regulators to hold financial institutions accountable. Rather than perpetuating the status quo, lawmakers should take a stand and say, “We will no longer do business with institutions that engage in discriminatory practices.” It is essential to establish clear regulations and ensure strict enforcement to protect consumers and businesses from these harmful practices.

Only through comprehensive banking reform and enforcement can we hope to create a fair and transparent financial system that serves the interests of all stakeholders.

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Michael Infanzon is a political and government policy contributor at The Prickly Pear.

 Michael writes about government policies that affect millions of Americans, from their introduction in the legislature to their implementation and how policies impact our everyday freedoms.

 Michael is the Managing Partner for EPIC Policy Group, located in Phoenix, AZ. EPIC has clients ranging from motorcycle rights organizations, firearms organizations, 2A rights organizations, veterans advocacy, chambers of commerce to agricultural products and personal freedoms among other policy issues.

 You can follow Michael on Twitter (@infanzon) and email him at minfanzon@epicpolicygroup.com