15 state attorneys general, spearheaded by Kansas Attorney General Kris Kobach, have issued a stern letter to Bank of America’s CEO, Brian Moynihan, urging immediate action to rectify practices perceived as discriminatory and to commit to transparency by participating in the Alliance Defending Freedom’s (ADF) Viewpoint Diversity Score Business Index.

The allegations against Bank of America have stirred significant concern, spotlighting instances where individuals and organizations were seemingly marginalized based on their religious or political affiliations.

A notable case involved the Tennessee-based Christian charity, Indigenous Advance, whose account, along with its affiliates, was abruptly terminated under the bank’s nebulous “risk tolerance” policies.

For years, those who work in the adult industry have faced similar discrimination from banks.

Compounding the controversy, a report last month from the U.S. House Subcommittee on the Weaponization of the Federal Government highlighted that Bank of America had voluntarily disclosed confidential customer data to federal agencies without proper warrants, labeling entities like ADF as potential “domestic terrorist” threats based on their religious and conservative stances.

The multi-state letter accentuates the pressing need for Bank of America to overhaul its operational ethos to prevent viewpoint discrimination—an action that Attorney General Kobach insists is essential for customer trust and legal and regulatory compliance. The timing of this letter aligns strategically with Bank of America’s annual shareholder meeting, suggesting a direct call for stakeholders to demand greater accountability and transparency from their institution.

Bank of America’s involvement, or lack thereof, with the ADF’s Viewpoint Diversity Score Business Index, which evaluates corporate respect for free speech and religious liberty, has come under scrutiny. Scoring a mere 8% out of a possible 100%, the bank’s commitment to First Amendment freedoms is being questioned. This index serves as a barometer for potential investors and customers to assess how corporations align with their values on free speech and religious expression.

This issue cuts deeper into the fabric of banking regulations. Historical initiatives like Operation Choke Point in 2013, which scrutinized banks’ dealings with legally contentious yet legitimate businesses, have cast long shadows over today’s banking practices. Although officially concluded in 2017, the echoes of such policies are evident in ongoing discriminatory practices against high-risk categories like the adult entertainment industry.

Operation Choke Point’s 2021 ruling emphasized that banks must conduct individual risk assessments rather than broad category-based decisions, advocating for a more nuanced and just approach to banking services. This ruling highlighted the necessity for banks to pivot away from sweeping judgments and towards more evidence-based, individualized assessments.

As the legal and societal landscapes evolve, the intersection of finance, privacy, and non-discrimination remains a battlefield. The outcomes of this high-profile case could set precedents for how banks handle privacy, engage with diverse viewpoints, and adhere to federal non-discrimination mandates.

Bank of America’s response to this collective call to action by state attorneys general will be a telling indicator of the financial giant’s readiness to align its operations with the evolving expectations of a just society.

The forthcoming shareholder meeting and its reactions will be critical in shaping the bank’s policies and public image. But will a desire to save face in the public be enough to change the years of discrimination? Only time will tell.

As the industry watches on, the balance between safeguarding consumer interests and ensuring equitable treatment underpins the fundamental challenges ahead for Bank of America and its peers in the banking sector.