How Banks Unwittingly Finance Mass Shootings
By ANDREW ROSS SORKIN Dec. 24, 2018
https://www.nytimes.com/interactive/2018/12/24/business/dealbook/mass-shootings-credit-cards.html
Omar Mateen used six credit cards to buy two guns and thousands of rounds of ammunition before he opened fire inside the Pulse nightclub.
Orlando, Fla. | 49 dead
James Holmes used credit to help buy more than $11,000 in guns, grenades, a gas mask and other military gear to attack a movie theater.
Aurora, Colo. | 12 dead
Stephen Paddock had two dozen guns inside the Mandalay Bay Resort when he rained fire on a music festival below. Police found four credit cards.
Las Vegas | 58 dead
The New York Times reviewed hundreds of documents including police reports, bank records and investigator notes from a decade of mass shootings. Many of the killers built their stockpiles of high-powered weapons with the convenience of credit. No one was watching.
His web browsing history chronicled his anxiety: “Credit card reports all three bureaus,” “FBI,” and “Why banks stop your purchases.”
He needn’t have worried. None of the banks, credit-card network operators or payment processors alerted law enforcement officials about the purchases he thought were so suspicious.
A New York Times examination of mass shootings since the Virginia Tech attack in 2007 reveals how credit cards have become a crucial part of the planning of these massacres. There have been 13 shootings that killed 10 or more people in the last decade, and in at least eight of them, the killers financed their attacks using credit cards. Some used credit to acquire firearms they could not otherwise have afforded.
Those eight shootings killed 217 people. The investigations undertaken in their aftermath uncovered a rich trove of information about the killers’ spending. There were plenty of red flags, if only someone were able to look for them, law enforcement experts say.
<huge snip well worth reading>
John Shrewsberry, chief financial officer of Wells Fargo — which counts the National Rifle Association as a client — has dismissed the notion that banks should regulate the use of its credit cards for gun purchases.
“The best way to make progress on these issues is through the political and legislative process,” he said in April on a conference call with investors.
There may be good reason that no bank executive wants to talk out loud about guns: In October, Senator John Kennedy, Republican of Louisiana, introduced a bill, the No Red and Blue Banks Act, which would “prohibit the federal government from giving contracts to banks that discriminate against lawful businesses based solely on social policy considerations.”
The bill was directed at banks that changed their policies regarding guns.
“Our friends at Citigroup and Bank of America apparently aren’t busy enough with their banking business; they have decided that they are going to set policy for the Second Amendment,” Mr. Kennedy wrote on Twitter.
And a policy expert at the American Civil Liberties Union recently expressed concern about how efforts to prevent mass shootings could infringe on individual rights.
“The implication of expecting the government to detect and prevent every mass shooting is believing the government should play an enormously intrusive role in American life,” Jay Stanley, senior policy analyst at the A.C.L.U. Speech, Privacy, and Technology Project, wrote in July.
In 29 states, consumers cannot use credit cards to buy lottery tickets because legislators don’t want consumers wracking up debt gambling. And under the Gun Control Act of 1968, firearms dealers must report if someone buys two or more handguns in a span of five business days.
That requirement can be evaded simply by buying at more than one store, but a system involving the banks and credit card networks could have the opportunity to flag the purchases.
Olivia Carville contributed reporting. James Williamson contributed research. Design by Andrew Rossback. Graphic by Keith Collins and Troy Griggs.
More on NYTimes.com