Amalgamated Bank Pressures Ruger To Support Gun Control Measures
BY Herschel Smith
6 years, 8 months ago
It was just two weeks ago I wrote this.
Suppose that Ruger needs to spend $500,000 buying to tooling to replace old and worn tooling machinery, or to retool a line to fabricate a new product. Suppose that none of the banks will do business with Ruger. How does Ruger pay for the tooling machinery? They can’t go through the bank. They can’t hand cash to the machinery manufacturer – their accountant would reject it as making them look like they’re doing business with Iran. No bank in their right mind will allow a company to deposit $500,000 cash without knowing where it came from.
This could all happen to Ruger without a new law being passed, since CEOs can do what they want, and corporations are in the main controlled by progressives and lawyers.
Apparently it’s worse than that. From USA Today:
Amalgamated Bank, a New York-bank with $48 billion in institutional investment assets that emphasizes socially responsible practices, sent a letter Thursday to Sturm, Ruger & Company’s board, demanding that it adopt six reforms or it would not support the re-election of one of the gun maker’s board members, Sandra Froman, who is also an NRA board member.
The bank claims that Froman’s and the company’s “close relationship” to the NRA pose a conflict of interest that “may inhibit objective assessment and management risks Sturm, Ruger faces.”
[ … ]
In a letter to Sturm, Ruger’s board, Amalgamated’s CEO Keith Mestrich pressed the gun maker to commit to steps that address risks to its business and stock performance, which Mestrich claims has posted returns trailing the broad S&P 500 stock index over the past five years.
On the policy front, for example, the bank called on the gun manufacturer to publicly endorse mandatory background checks for all gun purchases and support the full funding of the federal agency that enforces gun laws.
Amalgamated’s top executive also wants Sturm, Ruger to take steps to monitor gun sellers to make sure guns don’t fall into the wrong hands and to emphasize “product safety innovation.”
All six reforms are recommended by Everytown for Gun Safety, a non-profit group focused on curbing gun violence.
Get the NRA board member off the Ruger board. But that’s not all. Read carefully. The bank wants Ruger to support so-called “smart guns.” If Ruger did this it would be the end of the business. They know it, and surely the bank knows it. They couldn’t shutter their doors fast enough to prevent looters from stealing what’s left because they couldn’t pay anyone to be at the plants.
This is a poorly written article because the author doesn’t explain exactly what leverage Amalgamated Bank has over Ruger, but presumably Ruger does their business with this bank.
If that’s so, this is what I warned about. Without capitulating to the gun controllers, gun manufacturers will be drummed out of business because they can’t exchange capital for expansions, retooling, or even the logistical chain or payroll. We have to do business with banks if you’re part of a corporation. There is no other choice.
We’re in a civil war. Realize where you are and what’s happening. While most of America watches TV sitcoms and wears idiotic football jerseys, be about your business procuring what you need. And that, quickly.
If you’re a gun manufacturer, you need to remove all avenues of leverage, get out of debt, and cut ties with corporate America. They hate you.
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On April 22, 2018 at 11:46 pm, Bill Robbins said:
Take you pick, ladies and gentlemen: The U.S. Constitution, or the New World Order. You cannot have both.
I chose the Constitution.
On April 23, 2018 at 3:32 am, TheOtherGeorge said:
“The bank wants Ruger to support so-called “smart guns.” If Ruger did this it would be the end of the business.”
– So they want Ruger to employ a technology that does not even exist at this point in time?
and they want Ruger to spend money on policing buyers?:”Amalgamated…wants Sturm, Ruger to take steps to monitor gun sellers to make sure guns don’t fall into the wrong hands…”
All of this; the pressure from Banks, the pressure from anti-gun NGO’s funded by billionaires (eg: Bloomberg ), from the MSM, from “grassroots” anti-gun roadshows using high school kids (some of whom are opportunists themselves) as props and especially the decidedly tragic and demonic but Oh soooo convenient spate of school shootings and fast food restaurant shootings by young, emotionally immature and easily manipulated misfits using AR-15’s can’t be coincidence. I have no way of proving it, but I do suspect that in some of these shootings the shooters were manipulated into embracing the role they played (yeah, and I know that I just accepted the moniker of “conspiracy theorist”).
I think it was Franklin Roosevelt who said that; “nothing that happens in politics is coincidence. If it happens, you can be damn well sure that it was planned that way”.
On April 23, 2018 at 6:17 am, Nosmo said:
This has been building for quite some time, and has floated to the surface because the Left now believes it sees enough social leverage to offer an opportunity. First National Bank of Omaha issued an NRA Visa card for about 20 years, then abruptly terminated that relationship; hideously overpriced Yeti coolers had a relationship with the NRA Foundation, until they didn’t; now Amalgamated Bank is trying to cripple Ruger; there are others, but they haven’t hit the public eye with sufficient force to get noticed yet.
Hindsight is always 20/20, but if we had been building reliability into supporting infrastructure for a couple decades stuff like this wouldn’t see the light of day. Since we didn’t, it’s high time we started in earnest, because the Left thinks it smells blood and it’s only going to get worse.
John Hawkins’ recent piece “7 Forces Driving America Toward Civil War” (https://townhall.com/columnists/johnhawkins/2018/04/21/draft-n2473193) has Tribalism as #2, and tribalism has historically always been a prime driver of violent societal conflict. It would be extremely advisable if we could head this off before the tipping point is reached, but I fear the degree of divergence is increasing.
On April 23, 2018 at 8:42 am, John Richardson said:
Amalgamated has no leverage with Ruger. They are not one of the top institutional shareholders. While they are the largest union-owned bank and engage in “socially responsible” investing, it would seem that even holding Ruger stock would be against their investment policy.
More important, Ruger is sitting on a pile of cash. That insulates them from a lot of the blackmail from the corporate gun control industry.
On April 23, 2018 at 9:42 am, 173d Viet Vet said:
If there is a commercial need, some enterprising entrepreneur will move toward filling that need. That is the beauty of the free market system.
What is preventing the Koch brothers or others from forming banks to meet such needs? Granted, no bank wants only one sector of the business world as customers, but like Medishare, a Christian based & Constitution-supporting bank would attract customers. Look at Chik-fil-a whose business significantly increased when libturds in Democrat cities began to hold back on business expansions…..
With all the gun owners and 2d supporters it should not be difficult to find the capital to start the “Patriot Bank”.
On April 23, 2018 at 10:49 am, NOG said:
Leverage? Ruger does not need a single bank. The threat is implied.
“In a letter to Sturm, Ruger’s board, Amalgamated’s CEO Keith Mestrich pressed the gun maker to commit to steps that address risks to its business and stock performance, which Mestrich claims has posted returns trailing the broad S&P 500 stock index over the past five years.” and
“The bank claims that Froman’s and the company’s “close relationship” to the NRA pose a conflict of interest that “may inhibit objective assessment and management risks Sturm, Ruger faces.”
The threat is implied legal action for the company and the Board of Directors. If Ruger did have “trailing returns” to investers they want to sue the company and directors- failing fiduciary responsibilities. That cost would hurt and directors would quit, I am sure replaced (demanded in the settlement) by people chosen by the bank (ie Bloomturd). Make the cost to do business so high and onerous that Ruger would close up shop. This is nothing more than another avenue of attack to get rid of guns…and the companies making them. By bloomturd and the elite monsters.
On April 23, 2018 at 10:57 am, Herschel Smith said:
@NOG,
Well, that’s another take on things and I don’t necessarily disagree with the perspective, but just to be clear, Ruger is like all corporations in America. Yes, they do need a bank in order to do business. No corporation can meet payroll or enable the logistics chain without it because all other corporations use banks because FedGov requires it. See how that works? The FedGov has made it that way.
On April 23, 2018 at 3:08 pm, Grenadier1 said:
TheOtherGeorge,
Its not a “theory” if the Conspiracy is actually real.
On April 23, 2018 at 3:14 pm, Grenadier1 said:
With regard to starting a Gun friendly bank. If we operated in a truly free market that would not be an issue. Thats the problem. The banking industry is not free. Its heavily regulated and its heavily regulated to favor the big banks that are already in business. You all know they manipulate the markets and manufacture the crashes. If you pay attention those generally occur when the number of small banks and lenders grows to be a legit problem for the big banks. Suddenly a crash happens and the small banks cant weather it. They get wiped out an its back to big banks only. When they have created an environment where you cant do business without a large bank holding your account then you are at the mercy of those banks. Its economic warfare and its one of the final stages that will lead us into actual physical war.
On April 23, 2018 at 3:46 pm, Herschel Smith said:
@Grenadier,
Yea, but more than just heavily regulated. They’re a must. We must use them. It’s illegal to transfer cash like a company must do in order to have a bank work-around. Because King George. He doesn’t get his cut if it’s hidden.
On April 23, 2018 at 4:48 pm, NOG said:
Mr. Smith, I did not make myself clear on the “single bank”. There are plenty of larger national and/or regional banks that would love to do business with Ruger. One bank will not affect Ruger’s ability to do business. But one well financed law suit to alter their business could. The tone of the story as I understood it was not from a banking/client view, but a investing/stockholder view. Bye the way, I just got back from the range. Just on principle I just bought a Ruger LC9s. The Cobalt Blue camo version. Killed two birds with one stone. Support Ruger and my very excellent local range/shop.
On April 23, 2018 at 4:53 pm, Herschel Smith said:
@NOG,
Okay. Got it. Thx.
On April 23, 2018 at 5:02 pm, JFP said:
Shock of shocks, this banker ceo started his career with the AFL-CIO and then went to the SEIU. All with a degree in poly sci and public policy from good ol Kalamazoo.
On April 23, 2018 at 6:16 pm, Pat Hines said:
Okay, my question is, “when is Trumpenthal going to stop these banks from their illegal acticivities”?
The president can issue directives to stop them.
On April 23, 2018 at 6:19 pm, John said:
Ruger should ask its customers to buy into the needed financing amount
at the same repayment interest rate that the bank wants. I’d buy a piece of it.
I bet a bunch of others would be interested also.
On April 23, 2018 at 8:27 pm, anon said:
We could dump these banks tomorrow if we wanted to. If everyone withdrew all of their money, maxed their cards and then dumped them, all on a coordinated time, the banks would be finished.
On April 24, 2018 at 7:48 am, dad29 said:
Amalgamated is blowing smoke. Their wackydoodle about ‘trailing earnings’ is just that–and if you look at GE’s next few years of earnings, you’ll see ugly in technicolor. No Board member is going to resign, nor be intimidated by this stuff.
If Amalgamated is a share-holding bank (that is, if its Trust Department owns Ruger shares f/b/o some funds), they can dump the shares. If they are a lender to Ruger, Ruger can find several options without much trouble, assuming that their numbers look decent.
But….
This is apparently Part One (maybe Part Two) of a larger plan. The next move might be more interesting. Buy More Ammo.
On April 24, 2018 at 12:37 pm, ExpatNJ said:
Why are the action of Amalgamated Bank not an act of terrorism???
“Terrorism is … use of … fear to achieve a financial … aim.”
-https://en.wikipedia.org/wiki/Terrorism [accessed 04/24/2018]
i.e. “Do as we say, or you get no money (financial aim)?
Could not not also apply in similar situations?
On April 24, 2018 at 5:12 pm, pdxr13 said:
Ruger State Credit Union. All payroll comes through the CU, day1 employees/families/customers (buy a Ruger firearm with an invitation card inside, open a CU account with $500!) open an account, higher than average interest for depositors due to industrial financing of the manufacturing business as a charter objective.
Banking is not expensive for the back-shop any more. ATM’s get serviced cheaper than staffing a teller window, when you need cash, and could be no-charge for RSCU customers using the factory ATM’s. Retail locations providing service is expensive, but the only physical location might be placed on Ruger manufacturing property to minimize that. Security at a firearms manufacturer is already pretty good, so why not offer pm coins as well as fiat-money banking?
Too big to fail banks should be shunned.