This is one of those stories that is hilarious, in a projectile-vomit sort of way.
Apparently the nation’s banks have decided they are “too moral” to handle money earned by people involved in the adult entertainment business.
Chanel Preston knows not everyone approves of her chosen profession. That’s one of the risks that go with being one of the biggest stars in porn. But she never thought it would affect her ability to open a bank account.
Preston recently opened a business account with City National Bank in Los Angeles. When she went to deposit checks into the account days later, however, she was told it had been shut down, due to “compliance issues.”
She found the manager she had originally worked with and asked what had happened. The bank, she was told, was worried about the Webcam shows she had on her site and had revoked the account . . . .
Preston noted she [also] has been denied a loan because of her profession[.]
“[The loan officer] asked me ‘are you affiliated with the adult entertainment industry?’ When I said yes, she said ‘We will not give you a loan,'” she said.
At least one adult-entertainment figure has had enough of this bollocks, and is taking to the courts.
Earlier this week, Marc Greenberg, founder of the soft porn studio MRG Entertainment, filed suit against JPMorgan Chase in Los Angeles Superior Court, alleging the bank violated fair lending laws and its own policy for refusing to underwrite a loan for “moral reasons”.
Greenberg says he was approached by a representative of the bank about refinancing an existing loan. But once he started the process, he says he saw repeated delays for four months. That’s when he said he reached out to a JPMorgan vice president for an explanation.
The vice president “was evasive in his response to plaintiff’s application status requests and finally informed plaintiff during a telephone conversation that plaintiff’s loan application was refused due to ‘moral reasons,’ because of JPMorgan’s disapproval of plaintiff’s former source of income and occupation as an owner of a television production company that produced television programs that dealt with the subject of human sexuality,” the complaint reads.
Greenberg’s attorneys claim they were told by the vice president that the application was denied because of the potential “reputational risk” to the firm.
Curiously, JPMorgan Chase, back when it was known simply as Chase, perceived no “moral reasons” or “reputational risk” that might prevent it from fondling money employed in Nazi Germany to kill and rob Jews.
Between 1936 and 1941, Chase and other US banks helped the Germans raise over $20 million in dollar exchange, netting over $1.2 million in commission—of which Chase pocketed a cool $500,000. That was a lot of money at the time. The fact that the German marks used to fund the operation came from Jews who had fled Nazi Germany didn’t seem to bother Chase—in fact they upped their business after Kristallnacht (the night Jews throughout Nazi Germany and Austria were systematically attacked by mobs in 1938). Chase also froze the accounts of French Jews in occupied France before the Nazis had even gotten around to asking them to.