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Story Updated : March 01, 2010 02:15:00 PM

Citibank's Gay Problem


Citibank x390 (Getty) I Advocate.com

Citibank has some explaining to do after freezing the account of a gay start-up website for "objectionable content."

Fabulis, a yet-to-launch social networking and travel site aimed at gay men, had its account at Citibank shut down recently without notice. Citibank decided to "block Fabulis’s bank account due to what was described to us on the phone as 'objectionable content' on our blog," Fabulis founder Jason Goldberg wrote on his site's pre-launch blog on Wednesday.

Two other bank representatives said Fabulis's content was not in line with Citibank's standards and the banking relationship would be terminated — even though the pre-launch blog features no sex, nudity, or violence; instead, it has mostly pictures of men in hooded sweatshirts. On Thursday, Goldberg wrote on the pre-launch blog that a Citibank representative had "called to apologize and to say that all three of the Citibank individuals who over the past 24 hours each individually claimed that Fabulis’s account was to be terminated for compliance issues around the content of our site, were all wrong to have said what they said."

Citibank followed that up with an official statement on Thursday: "Citibank sincerely apologizes to Mr. Goldberg for this misunderstanding. This situation had nothing to do with the content of his web site and any comments by our staff to the contrary were incorrect; we are reviewing what happened. This was a technical issue about missing documentation that is required for new business accounts. Once we resolved the situation, we unblocked the account immediately. Mr. Goldberg is a valued customer and we appreciate his business. Also, Citi is strongly committed to diversity, including support for the gay, lesbian, bisexual and transgender community, and other organizations promoting diversity. In fact, this week Citi has announced the financing for the True Colors Residence, a housing facility for homeless GLBT youth in New York City."

Then on Friday, Citibank took back the whole "missing documentation" excuse, and admitted a compliance officer reviewed Fabulis and "marked it as porn." Citibank later announced it "updated/revised its policies for internet businesses due to the fabulis affair." 

Before the release of the statements, Richard Socarides — the former gay and lesbian adviser to President Bill Clinton and a board member of Fabulis — said he was flummoxed by Citibank's actions, but he speculated on the bank's behavior.

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Reader Comments
  • Name: Andre
    Date posted: 2/28/2010 9:41:21 PM
    Hometown: Metro Detroit, MI.

    Comment:

    Once again, I fail to see the story here - Citibank stated it was a technical misunderstanding and they resolved the issue. They didn't wait weeks or months and are only responding to pressure, they did it within days once they were notified of the mix-up. This is hardly "Citibank's Gay Problem" - a bank that has and continues to support a number of different GLBT organizations.

  • Name: Marcie
    Date posted: 2/28/2010 9:58:16 AM
    Hometown: New York

    Comment:

    To Gary the homophobe: "Some queens" did not do this. Some breeders did. This is an example of how meaningless all the fake liberal pronouncements are from politicians and businesses like Citibank. I will never again do business with them.

  • Name: James
    Date posted: 2/28/2010 7:36:48 AM
    Hometown: New York

    Comment:

    Gary, et al, you are like the Jews who could not believe the Nazis really disliked them. Pollyanna is alive and it reads The Advocate. You tipped your hand writing "some queens" while you defend Citibank: gay self hatred is worth getting out of. Citibank deserves to be trashed for this, can it be any plainer? Wake up.

  • Name: Gary Squires
    Date posted: 2/27/2010 8:24:11 PM
    Hometown: San Mateo

    Comment:

    I am also of the mind that this is just a gaff by some schmucks at Shittybank just misreading what was actually the problem. Could they be homophobic or some queens just trying to be smart asses, who knows. The bigger problem is that this bank is so disjointed and departments so spread out that one doesn't know what the other is doing. Customer service is abysmal, yet they keep pestering their account holders at their local branches to fill out customer services surveys or calling them on the phone in what amounts to an insincere campaign to make it look like they care. They don't care, the bank has lost billions on their investment side, they were bailed out by us taxpayers through TARP, the investment bank side has been caught numerous times by the Fed and other governmental agencies for shady dealings, and they continue to "screw" over their individual retail banking customers through fees and account mishandlings to make up for their corp management dealings.

  • Name: Jason
    Date posted: 2/27/2010 7:44:32 AM
    Hometown: Baltimore

    Comment:

    What self hatred for any gay person to write here defending homophobia! No, this was not "just a mistake". Shittybank can put a spin on this and donate for the next 100 years to various causes, but the truth is they hate homosexuality thus pulled the plug on this account, Only to back off once the heat was on. Of course, they can not "approve" of sex businesses, but businesses that murder people-such as war profits- are OK. They are so moral. Any Uncle Tom writing here to support this monsterous organization is beyond help. The only reason why our struggle for rights has come as far as it has is because we kick homophobes like Shittybank each time the oppress us and keep the pressure on. They can endorse, along with other "friends" like Obama, the police and company- all the proclamations in the world. When push comes to shove they are still our enemy and we have to always watch them and raise a howl everytime they try to crap on us.

  • Name: Elliot
    Date posted: 2/27/2010 2:39:49 AM
    Hometown: New York

    Comment:

    guys u need to relax...just because some reception nobody made a bad judgement call doesnt mean the COMPANY as a whole is responsible they oppologized and i really think it was just a one man mistake kind of thing

  • Name: Not buying the bullshit
    Date posted: 2/26/2010 6:57:58 PM
    Hometown: SF

    Comment:

    @cmh, you're pretty naive, too. How does one get from "a technical issue about missing documentation" to "objectionable blog content"? You mean to tell me that THREE different people thought missing documents were objectionable blog posts? Seriously? Explain to me how that might happen. Here I am, Joe Schmoe, looking over an account to see if it's complete, see some missing documentation, so I put a hold on the account. I call Bill Dingle in the next cube and say, "Hey - XYZ account is missing some documentations, so I closed the account - would you send them a letter letting them know? Or call them? Or answer their phone calls when they call asking what it's about?" Bill then promptly writes them a letter and calls them saying, "You perverts have been shut down!" Is THAT what you think happened, cmh? Explain it to me if you think it's a different scenario - other than HOMOPHOBES doing what HOMOPHOBES do.

  • Name: HRC is SHIT
    Date posted: 2/26/2010 6:51:48 PM
    Hometown: New York

    Comment:

    So Citibank scored a 100 on the Human Rights Campaign (HRC) scale. Hell, anyone that donates money to the HRC can buy a 100 rating. Isn't that they way that Peter Coors got his for his company? HRC is a BUSINESS. A business to make money. It has nothing to do with human rights or gay civil rights, and if you think otherwise, you're naive as hell or part of the scam.

  • Name: cmh
    Date posted: 2/26/2010 4:19:59 PM
    Hometown: Worcester, MA

    Comment:

    I think people may be jumping to quickly to conclusions here. There obviously was a mistake and the officials moved quickly to correct it and made a profuse apology about it. Mistakes do happen folks. To attribute it to some type of organizational stance against the LGBT community seems pretty misguided in my opinion.

  • Name: juan
    Date posted: 2/26/2010 3:56:16 PM
    Hometown: san franciscco

    Comment:

    I will never od business of anykind with citibank again after reading this article.



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