There is much anger regarding the murder of the 17 children recently. Rightfully so. As a result, children and adults have gathered together to boycott businesses working with the National Rifle Association (NRA). But the boycott strategy is missing the single most important component that could lead to a reduction of firearms in America. Put aside the political rhetoric about gun ownership and focus on the fundamental truth – it’s all driven by money.
Money is the nexus to the NRA and to the gun manufacturers. Without money, the NRA ceases to exist and the gun makers stop making guns. Simple, quick and effective. So, rather than boycotting those selling the guns and the NRA, how about going after the money?
In June 2015, Colt Defense, a maker of guns filed for bankruptcy protection. This was the second bankruptcy for the company. In 1992, Colt filed its first bankruptcy. Colt has been making guns since the 1840’s and is an American icon. It makes the AR-15 assault rifle that many of you are opposed to. According to Colt management and financial analysts, Colt, unlike its competitors relied too much on government contracts and thus it could not survive cutbacks in military expenditures. To survive, Colt needed to augment its consumer products, i.e. sell AR-15s and other guns directly to consumers.
Earlier this month, Remington announced it was filing for bankruptcy. According to its February 17, 2018 announcement, Remington’s largest bank creditors are Bank of America, JP Morgan and Wells Fargo & Co. Remington’s creditors are likely to cease control of the company and hope to settle the bankruptcy within 45 days. The creditors-turned-owners are looking for a quick exit strategy because of the Florida school massacre.
A year after filing its bankruptcy, Colt emerged from bankruptcy about $184 million less in debt and about $50 million more in new financing. If Remington’s bankruptcy plans work out, it will soon emerge from bankruptcy with some of its debt load reduced by the court action.
It’s the financing that would end gun proliferation today and it is the item all of you should be targeting. Without loans, the guns can’t be made.
When Colt filed for bankruptcy protection, it listed Bank of America and JP Morgan Chase among its almost 3,000 creditors, according to the 69-page Creditor Matrix (15-11296-LSS) filed by the company on June 15, 2015. Likewise, Remington lists Bank of America, JP Morgan and Wells Fargo among its bank creditors.
It’s these loans that keep the gun makers in business. Without the loans, the number of guns manufactured in America would drastically be reduced.
Guess who else is a creditor for Colt? The National Rifles Association is listed under various NRA programs. It is too early to see a full list of Remington creditors, but it is likely that the NRA is listed among its creditors. Regardless, the money, especially operating loans, is central to ending the proliferation of guns in America.
If you really want to end gun proliferation then target the underlining problem; the loans given to gun manufacturers by Bank of America, Chase and Wells Fargo, among other banks.