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00:00:00
>> In the wake of the Parkland school shooting that left 17 people dead, Bank of America promised to stop financing what it called military-style firearms for civilians. But Reuters has learned that B of A is contributing millions of dollars toward a rescue package to help gunmaker Remington get back on its feet.
00:00:18
Remington makes the Bushmaster assault-style rifle, including the one used in the Sandy Hook school shooting in Connecticut that killed 20 children and 6 adults in 2012. On April 10th, a Bank of America executive told Bloomberg News, quote, it is not our intent to underwrite or finance military-style firearms on a go-forward basis.
00:00:39
But a review of court documents shows B of A is contributing $43.2 million toward a $193 million lending package with seven other banks that will help the gun manufacturer bounce back from bankruptcy. Bank of America said it does not comment on client matters. Representatives from Remington and its private-equity owner did not immediately respond to requests for comment.
00:01:02
Bankruptcy court documents show B of A's agreement with Remington came in March, before the bank's public shift on firearms. Those records show the bank could back out and find another lender to cover its commitments. But a person familiar with the bank's thinking told Reuters withdrawing from the deal could hurt the bank's reputation and undermine Remington's survival.
00:01:22
In the weeks leading up to Remington's bankruptcy, court documents show 30 other potential lenders turned down requests for help from Remington's financial advisor, many of them citing firearms as the reason.