Big Banks: The New Morality Police
In the US, financial institutions are acting as morality police, rejecting individuals from acquiring bank accounts due to the nature of their careers.
This naturally leaves them little choice, and will likely lead many individuals to grow open-minded towards alternative currencies such as Bitcoin, gold and silver.
When Chanel Preston, a major porn star, opened a business account with City National Bank in Los Angeles, the account was shut down within days due to “compliance issues.”
She spoke to the manager she had originally worked with, who told her that the bank was worried about her profession, and thusly had revoked the account.
Preston is but one of many porn stars who have found trouble within the banking industry. Several performers and porn insiders said they had been denied accounts from a variety of financial institutions.
“The people within my [local] bank have urged me to downplay the nature of my business because corporate frowns on it,” said one long-time industry veteran.
Earlier this week, Marc Greenberg, the founder of the soft porn studio MRG Entertainment, filed a lawsuit against JP Morgan Chase in Los Angeles Superior Court, alleging the bank violated fair lending laws and its own policy for refusing to underwrite a loan for “moral reasons.”
Greenberg had a loan process delayed for months, and when he finally spoke with a vice president, the VP “was evasive in his response to plaintiff’s application status and requests and finally informed plaintiff during a telephone conversation that plaintiff’s loan application was refused due to ‘moral reasons,’ because of JP Morgan’s disapproval of plaintiff’s former source of income and occupation as an owner of a television production company that produced television programs that dealt with the subject of human sexuality,” according to the complaint.
Historically, major banks like JP Morgan Chase have not had to operate within a competitive economy. Their institution, and institutions like theirs, had effectively no competition – that is, until Bitcoin. Now for the first time, they will eventually learn that, once alternatives abound, their fate is thrown in question. They can try to depend on regulation, but as keystone financial institution policy become increasingly limiting, their legitimacy in the eyes of the public will be undermined.