Wells Fargo Is the Gun Industry's Top Financier, Says New Report

Wells Fargo is the gun industry’s top financier. The San Francisco-based bank also provides a $28 million line of credit to the National Rifle Association and is the NRA’s primary banker.

This information is drawn from five years of data compiled by Bloomberg News, gathered since the Sandy Hook massacre in December 2012. Since that mass shooting in Newtown, Connecticut, Wells Fargo has been the top go-to bank for those in the gun business needing a loan.

When Wells Fargo and other banks involved in the firearms sector do business with gun manufacturers, it is in the form of bookrunning  — which, according to Bloomberg reporters, means the banks are arranging the borrowing, setting up the debt. While the debt may begin with one bank, it could end up dispersed among several.

The gun companies cited by the Bloomberg report with which Wells Fargo does a large amount of business include: American Outdoor Brands, Remington Outdoor, Sturm Ruger & Co. and Vista Outdoor. American Outdoor Brands, known as Smith & Wesson until January 2017, makes a version of the AR-15 semiautomatic assault rifle associated with some mass shootings.

KQED asked Polly Mosendz, Bloomberg’s firearms reporter, if she knew why Smith & Wesson had undergone a name change last year. Mosendz said the company was diversifying its product to include other items such as targets, holsters, knives and tree saws, in addition to its more well-known products of firearms of all sorts.

Wells Fargo is at the top of the heap of banks providing financial resources for those in the business of guns, with $431 million in financing. It leads other financial institutions by more than $80 million, according to Bloomberg.

Besides the strong ties of firearms manufacturers and sellers to Wells Fargo, the NRA benefits from a $28 million line of credit from the bank, as well as holding its primary accounts there.

KQED asked Wells Fargo for comment. The bank emailed this response:

At Wells Fargo, we have been deeply saddened and troubled by the increasing number of senseless firearms-related tragedies in our homes, communities, and schools. We recognize that the national dialog about what can be done to curb these incidents is intensifying. We respect the debate currently happening in our country, and continue to believe this discussion is best carried out through the local, state, and federal legislative process, where all Americans have an opportunity to participate.

Our role as a bank is to lend responsibly and offer related services to customers, companies, and projects that meet all necessary legal requirements and policies. With respect to gun manufacturers, we have a strict due diligence process to ensure that each adheres to all state and federal laws before accepting them as customers. It is generally not our practice to comment specifically on the nature or terms of customer or client relationships — whether a consumer, company or organization. We plan to engage our customers that legally manufacture firearms and other stakeholders on what we can do together to promote better gun safety for our communities.

Wells Fargo was not alone in providing significant resources to gun manufacturers and the NRA. Second to Wells Fargo in amount of business with the firearms industry was Morgan Stanley, with $350 million in loan and bonds. TD Securities, Bank of America Merrill Lynch, JPMorgan and U.S. Bancorp were also among the companies that made the list.

Michael Bloomberg, founder of Bloomberg News’ parent company, Bloomberg L.P., is a donor to organizations supporting gun control.