Federal Judge Says It's Plausible That Andrew Cuomo Violated the First Amendment by Pressuring Banks and Insurers to Shun the NRA

Jacob Sullum Nov. 7, 2018

The organization's lawsuit against New York's governor survives a motion to dismiss.

Last night a federal judge said the National Rifle Association may proceed with a lawsuit that claims New York Gov. Andrew Cuomo is violating the First Amendment by pressuring banks and insurers to shun the NRA and "similar gun promotion organizations." U.S. District Judge Thomas McAvoy questioned Cuomo's claim that his messages about the wisdom and propriety of providing financial services to the NRA amount to nothing but legitimate regulatory oversight and protected government speech.............there is strong evidence that Cuomo and Maria Vullo, superintendent of the New York State Department of Financial Services (DFS), are in fact threatening banks and insurers that dare to do business with organizations that oppose the governor's gun control agenda..............

Those threats had a noticeable impact, causing insurers and banks to either end existing relationships with the NRA or decline new business. One banker from upstate New York told American Banker that the "politically motivated" guidance memos put people like him in a bind: "If a business is a legal entity, how do I know who is going to come in disfavor with either the New York State DFS or a federal regulator, that they may say, 'Reputationally, you shouldn't be doing business with this company'? It's hard to know what the rules are." Other industry sources told the magazine "such regulatory guidelines are frustratingly vague, and can effectively compel institutions to cease catering to legal businesses."............To Read More...