Alliance Defending Freedom has stepped into the financial sector with a shareholder resolution aimed at addressing concerns over politically motivated account closures at U.S. Bank. The legal advocacy organization backed a proposal presented at U.S. Bank’s annual shareholder meeting, calling for transparency regarding the abrupt closure of a political party’s long-held account and advocating for policy changes to prevent similar incidents in the future.
Challenging Unexpected Account Closures
The shareholder resolution stems from U.S. Bank’s unexplained decision to close the Constitution Party of Idaho’s account at the beginning of an election cycle. According to Alliance Defending Freedom, this action raised concerns about potentially discriminatory banking practices that could impact customers based on their political or religious views.
“No one should fear losing access to essential financial services because of their views,” said Jeremy Tedesco, Senior Counsel and Senior Vice President of Corporate Engagement for Alliance Defending Freedom, emphasizing the importance of viewpoint-neutral banking practices.
The former account holder, Tony Ullrich, who serves as Chairman of the Constitution Party of Idaho, stated that the bank closed their account “with no notice and virtually no explanation at the beginning of a busy political season.” This experience led Ullrich to become an advocate for banking transparency and fairness, regardless of political affiliation.
Building on Previous Victories
The advocacy effort at U.S. Bank follows similar successful engagements led by Alliance Defending Freedom at other major financial institutions. Most notably, JPMorgan Chase recently agreed to adopt language in its Code of Conduct that specifically protects against political and religious discrimination in banking services.
These policy changes at Chase came after extensive engagement with shareholders and Alliance Defending Freedom attorneys, who have been working to address what they see as a pattern of “debanking” at major financial institutions. The Chase policy now explicitly states that the company will “not tolerate discrimination” based on religious affiliation or political opinions.
Alliance Defending Freedom’s work on this issue extends beyond individual banks. The organization has developed the Viewpoint Diversity Score Business Index, which evaluates financial institutions’ policies related to viewpoint diversity and fair treatment. This index has become a resource for shareholders seeking to engage with companies on these issues.
Tim Schwarzenberger, Portfolio Manager and Director of Corporate Engagement at Inspire Investing, which partnered with Alliance Defending Freedom on the U.S. Bank resolution, emphasized that “banks should respect everyone’s freedom to participate in the marketplace without fear of political or anti-religious bias.”
A Growing Movement for Financial Freedom
The shareholder advocacy at U.S. Bank represents part of a broader campaign by Alliance Defending Freedom to ensure that Americans maintain access to basic financial services regardless of their political or religious beliefs. Several states have recently taken legislative action to address concerns about discriminatory banking practices, with Idaho becoming the latest state to sign the Transparency in Financial Services Act into law.
Alliance Defending Freedom, founded in 1994 as a legal advocacy organization committed to protecting religious freedom and free speech, has expanded its work to include corporate engagement on issues affecting fundamental freedoms in the marketplace. Through these shareholder advocacy initiatives, the organization continues to press for policies that protect diverse viewpoints within America’s financial system.
As this movement grows, Alliance Defending Freedom remains at the forefront of efforts to ensure that banks serve as neutral platforms in the marketplace rather than arbiters of acceptable political or religious expression. The resolution at U.S. Bank marks another significant step in this ongoing campaign for financial freedom and transparency.
