Citibank Shuts Down Gay Entrepreneur’s Bank Account Over Blog’s Content
Thursday, February 25, 2010 at 3:27 pm
Jason Goldberg is the CEO of a company called Fabulis, which is developing a website, iPhone app and social media application targeted at gay men. His company — which is at least his third start-up — is funded by investors including The Washington Post and the venture capitalist Allen Morgan, and they just launched their beta version this month. You would think he would be the kind of customer Citi would want — but Citi decided otherwise after a compliance officer reviewed his site and decided that a social networking application for gay men was “objectionable.”
Without notifying Goldberg or anyone at Fabulis, Citi shut down their bank accounts for objectionable content on Fabulis’ blog, though it refused to specify which content. After hours of phone calls, several articles and a threat to take their banking elsewhere, Citi finally called Goldberg to say that the three Citi employees who had decided Goldberg’s social networking site was objectionable were “wrong to have said what they said.” Note that the bank did not say they were wrong to have suspended his account without notification, or to have flagged his blog as objectionable because it talks about the gay-themed (but not pornographic) company that he is starting, but just that the three employees statements to him were wrong.
In fact, what they told Goldberg was likely right out of an employee handbook, if the phrasing is anything to go by: “Content was not in compliance with Citibank’s standard policies.”
Does Citibank make a regular habit of reading up on the content generated by all its business customers — and are its personal banking clients exempt? Do they accept business accounts from companies that produce or distribute pornography (which includes business giants such as Barnes and Noble and Amazon, as well as nearly every convenience store in the country)? Do they terminate the business accounts of freelance writers if they object to the content written by the customer — be it sexual or political? Is their compliance department monitoring the blog of each and every customer to make sure that storing your money with them is socially acceptable? It seems unlikely that Citi is going around reading all of its customer’s blogs or checking to make sure that every client meets with its employees’ standards of unobjectionable. Far more likely, Goldberg’s business was targeted because of its audience — gay men — and what some employees decide is objectionable.
But then maybe Citibank’s unspoken policy of judging the thoughts and sexual orientation of its customers is why Playboy Enterprises does its banking with Bank of America.
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59 Comments
Comment posted February 25, 2010 @ 4:20 pm
I hope Citibank hangs itself. They've been nothing but discriminatory from the word go, and I know I'm not the only one who feels this way. I hope Mr. Goldberg sues the pants off of them and wins. The latter is indecent exposure we ALL would like to see!
Comment posted February 25, 2010 @ 4:46 pm
I find war objectionable. I also find religious institutions that impose their will on those outside their faith objectionable. Will Citi stop funding them?
Comment posted February 25, 2010 @ 4:47 pm
People need to move their money out of Citi Bank. They need to fail to wake up Wall Street. People have to stop being afraid of Citi Bank…….it's still your money.
Pingback posted February 25, 2010 @ 5:11 pm
[...] via Citibank Shuts Down Gay Entrepreneur’s Bank Account Over Blog’s Content « The Washington Indepe…. [...]
Comment posted February 25, 2010 @ 6:08 pm
Shakespeare was wrong it should be “Kill all bankers”
Comment posted February 25, 2010 @ 7:08 pm
nice to know citi has such high moral standards… /sarcasim
Comment posted February 25, 2010 @ 7:35 pm
So in other words, not only is Citi homophobic, but sexist as well. Since the isms go together, does that infer they have a problem with racism too?
Comment posted February 25, 2010 @ 7:58 pm
Everyone with a gay child should move their money out of Citi Bank and make sure they know why you are moving your money.
Comment posted February 25, 2010 @ 8:35 pm
Are there any additional instances where Citi has made these types of decisions before based on blog content? Also, when did the one compliance officer become three?
Comment posted February 25, 2010 @ 11:44 pm
As a progressive, I have to approve. If the business was geared towards gay men, Citi was correct in closing the account, as the business was discriminating against people based on gender and sexual preference. We can't tolerate bigotry in a progressive society.
Comment posted February 26, 2010 @ 12:19 am
Unbelievable! Since when did the bank become the morality police? Hopefully all people who are tired of dicrimination will take their money out of Citi. They are the modern day equivilent of MCP's.
Comment posted February 26, 2010 @ 1:27 am
So, now Sarah Palin is going by the alias 'Erich Von Freemason?'
Comment posted February 26, 2010 @ 1:50 am
Citibank has a long history of suddenly freezing the accounts of companies whose products can be seen as explicit/erotic, openly sexual, or even simply sex-positive. I was involved years ago with a company called LinkTank (I was a very occasional contractor, and my girlfriend was a full-time employee) that ran two adult/erotic review sites: Eroscan (originally an offshoot from Blowfish) and NerveLink (the outsourced link pages of Nerve.com). At some point in 1998/99, my girlfriend called Citibank with some question about the account (as I recall, the other, founding employee had left without properly executing all transfers of authority, and there'd subsequently been some sort of foul-up with the payroll processor — or something to that effect). While she was on the phone, the bank representative she reached suddenly put her on-hold, returning after a few minutes to say she needed to do some research and would call back.
The next day, my girlfriend received a call from the branch manager saying the company did not meet with the bank's standards, and the account had been frozen; furthermore, in order to access the now-frozen funds, my girlfriend would have to provide a statement from the company's board of directors authorizing their disbursement, at which point a check made out to LinkTank would be issued — and subsequently would need to be deposited in a valid corporate account at another bank. Since the company was in the process of being wound down, and since the value of the frozen funds was barely greater than the cost to open another corporate account, in the end they were simply abandoned.
For another Citibank horror story, check http://literateperversions.com/?p=490 .
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Comment posted February 26, 2010 @ 7:40 am
Did they get any TARP money or any other federal assistance? If so, I'm pretty sure they're in violation of some laws. ..
Pingback posted February 26, 2010 @ 9:30 am
[...] is anything to go by: “Content was not in compliance with Citibank’s standard policies.” http://washingtonindependent.com/77696/citibank-shuts-down-gay-entrepreneurs-bank-account-over-blogs... [...]
Pingback posted February 26, 2010 @ 9:48 am
[...] Source: washingtonindependent.com [...]
Pingback posted February 26, 2010 @ 9:53 am
[...] Read more @ http://washingtonindependent.com [...]
Comment posted February 26, 2010 @ 9:58 am
Man, if only citibank had put this much due diligence into the home loans they underwrote, they might not have needed a fucking bailout.
Comment posted February 26, 2010 @ 9:58 am
Man, if only citibank had put this much due diligence into the home loans they underwrote, they might not have needed a fucking bailout.
Comment posted February 26, 2010 @ 10:56 am
Good for Citi. It's about time someone stands up for what is right.
Comment posted February 26, 2010 @ 11:27 am
The biggest 'welfare queen” in the world complaining that some of its customers are “queens?” How precious. (Pardon the archaic epithets but they were impossible to resist.)
My wife already closed all our accounts at Citi but I surely would if I could.
Comment posted February 26, 2010 @ 12:23 pm
Sounds like you know “bigotry” and “discriminating” very well. “Progressive,” not so much…
Comment posted February 26, 2010 @ 12:29 pm
Yeah! Then they can start closing the accounts of all the other untermenschen…
Comment posted February 26, 2010 @ 1:05 pm
It is looking more and more like the Federal Government should have let CITI go down the toilet.
Comment posted February 26, 2010 @ 1:07 pm
It is time that companies step up to what is right, instead of being allowing these type of group to use threats and extortion. This diversity Crap is slowly destroying this nation, and until we start taking a real stand on this, we are destined to go down the drain. Evil have become good, and good has become evil.
Comment posted February 26, 2010 @ 1:12 pm
In response to Erich Von Freemason
“As a progressive, I have to approve.”
Your attitude is absolutelly not “progressive”.
I find you attitued disgusting, the same as is Citi's
Comment posted February 26, 2010 @ 3:46 pm
these corporations and banks are a scourge on the earth.
Comment posted February 27, 2010 @ 2:07 am
You approve of a business (Fabulis) that discriminates based on gender and sexual preference? That's a violation of Civil Rights laws. Any business that is intolerant of diversity should be shunned. And the Feds should go after them for their bigoted business model and use the force of law to make them more inclusive.
Comment posted February 27, 2010 @ 2:08 am
You approve of a business (Fabulis) that discriminates based on gender and sexual preference? That's a violation of Civil Rights laws. Are you George Bush posting under an alias?
Comment posted February 27, 2010 @ 2:22 am
And here we have another closet Republican bigot who thinks that the 1964 Civil Rights Act should be repealed and businesses (in this case, Fabulis) should be allowed to discriminate against people based on their gender or sexual preference. Why don't you all move to Alabama, and leave the rest of us to build a progressive society where businesses cater to the needs of all, and are not allowed to treat some as second-class citizens? The future belongs to we progressives, and there is no place in it for you backwards, intolerant bigots.
Comment posted February 27, 2010 @ 10:03 am
So the NAACP should be closed? How About NOW? What about all churches that discriminate against homosexuals? Should CITI refuse to do business with them?
Comment posted February 27, 2010 @ 3:54 pm
Just an american? More like, Just another stupid american…
Comment posted March 3, 2010 @ 6:36 pm
Do you have any evidence that they discriminated against anybody, or are you talking out of a different orifice? Targeting a specific audience is not the same as discrimination. Perhaps you don't understand the difference?
Comment posted March 4, 2010 @ 12:34 pm
How hateful! We should all boycott this homophobic bank! I am going to vote with my feet!
Comment posted March 4, 2010 @ 5:34 pm
How hateful! We should all boycott this homophobic bank! I am going to vote with my feet!
Pingback posted March 5, 2010 @ 10:42 am
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Comment posted March 17, 2010 @ 5:16 pm
i wish citi would go out of business already… they have consistently been defrauding the american people and government, but what gives? why the f are they still around? any small business owner pulling the same crap would've been in jail years ago…
Comment posted April 4, 2010 @ 11:58 pm
Thats messed up what happened to freedom of speech. I heard he used blog posting software to make it go viral all over. http://internet-pro-tools.com/the-best-blog-posting-software-online-period
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Comment posted May 14, 2010 @ 4:27 am
I would take my business to another bank. It is only a matter of time before someone at Citi finds something “inappropriate”.
Comment posted June 29, 2010 @ 6:19 pm
Taking your business elsewhere should be only the 1st step. The 2nd step should be sueing them for all they've got. This unacceptable in the 21st century. The account was closed because he way gay… this sounds so nice… for a big lawsuit…
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Comment posted August 12, 2010 @ 7:51 am
Annoying the pink dollar seems a little self defeating. Why on earth do they even have employees that check out customer websites?
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