Credit Injustice

[F]law School Episode 14: Banking on Discrimination

Citibank, Armenian Americans, and Corporate Bias

Talish Babaian

April 5, 2025

Summary:

In this episode of [F]law School, hosts Giovana de Oliveira and Thy Luong speak with third-year law student Talish Babaian about how, in 2023, Citibank quietly denied credit and closed accounts for Armenian Americans in Glendale, California—and how that pattern fits into a long history of discrimination, corporate power, and legal systems that protect institutions over people.

Editors:

Special thanks to Nandini Kalani for audio editing assistance, Giovana de Oliveira  and Nelson Reed for production assistance.

Guest Bio:

Talish Babaian is a third-year law student at Harvard Law School. She is also a graduate of the University of California, Los Angeles. Prior to attending law school, she worked in local politics in the city of Glendale, California, where she was born and raised.

Music:

Our theme music is “I Been Waiting” by Crystal Squad, and you’ll also hear segments of “Palms Down” by Blue Dot Sessions.

Related [F]law Resources: 

Additional Resources (regarding topics mentioned in podcast):

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Transcript 

 (This transcript was created by an automated process and contains errors.)

Flaw School – Episode 14; Season 1 – The Migrant Trap

With Talish Babaian and hosts Giovana de Oliveira and Thy Luong

Kingsfield from The Paper Chase:

You come in here with a skull full of mush, and you leave thinking like a lawyer.

Alan Greenspan:

I found a flaw in the model that I perceived as the critical functioning structure that defines how the world works, so to speak.

Talish Babaian:

My dad was actually taking the trash out one day. He had just gotten open heart surgery. He was just starting to move around, walked over to our trash bin, starts rolling it in and realizes the sticker on our trash can that says stupidian, like IAN, and it had like the red, blue, orange, the Armenian flag colors plastered on there. and someone had pasted it on our trash can. Kind of implying that Armenians are stupid. They use the same I-A-N-Y-A and that’s very indicative of, you know, an Armenian name.

Jon Hanson:

Hi everyone! This is Jon Hanson from the Systemic Justice Project and The Flaw Magazine at Harvard Law School. In this episode of [F]law School, hosts Giovana de Oliveira and Thy Luong talk with third-year law student Talish Babaian about something that didn’t make headlines—but should have. In 2023, Citibank was fined for quietly closing Armenian Americans’ accounts and denying them credit—often without explanation. It happened in Glendale, California, where nearly half the population is Armenian. The pattern was hard to miss. The names were Armenian. The closures came out of nowhere. Talish helps make sense of what happened. She traces the history of Armenian discrimination in the U.S., from restrictive housing covenants to name changes made out of fear. She shows how corporate power shapes the rules of who gets to belong, who gets to borrow, and who gets left out. This is about Citibank. But it’s also about what happens when corporations write the rules and hide behind legal protections the rest of us can’t use. Welcome to Flaw School: the podcast about the flaws in the law.

Giovana de Oliveira:

Hey, welcome to Flaw School, a podcast that explores the flaws in our legal system. We’re today’s hosts—I’m Giovana de Oliveira, a 2L at the law school.

Thy Luong:

And I’m Thy Luong, a first-year at Yale. We are so excited to be hosting this episode. Every two weeks, we interview law students to uncover the role of corporate actors in producing many of our most urgent social problems—and the troubling tale of corporate actors shaping, bending, capturing, and breaking the law in their favor. In this episode, we’ll be discussing Citibank’s illegal discrimination against Armenian Americans.

Giovana de Oliveira:

Today, we’re joined by Talish Babaian. Welcome to Flaw School, Talish. Class is in session.

Talish Babaian:

Hi Giovana, hi Thy, thanks so much for having me.

Giovana de Oliveira:

Thank you so much for being here and for taking the time to talk to us about this incredibly interesting and important topic. Before we really get into it, I’m wondering if you could tell us a little bit about who you are, and if there are any aspects about your personal experience and background that brought you to this topic.

Talish Babaian:

Sure, of course. Thanks so much for having me again. My name is Talish Babaian. As you mentioned, I am a 3L at HLS. I was born and raised in Glendale, California. I’m ethnically Armenian. My parents came to the U.S. in the ’70s. My dad was a refugee. He and his family had left Iran and then got stuck in Lebanon during the civil war. On my mom’s side of the family, they immigrated to the U.S. from Lebanon, and my great-grandparents on that side were survivors of the Armenian Genocide. They ended up in Lebanon after they escaped. I attended Armenian school until high school. I grew up speaking Armenian at home, so my Armenian identity is something that’s really important to me.

Giovana de Oliveira:

Thanks for that story. Your article is super interesting to read, and I learned so much—not only about Citibank’s discrimination against Armenians, but also about the history of Armenian discrimination and oppression. What inspired you to write this article?

Talish Babaian:

I knew I wanted to write about something personal, something that had affected those around me. I figured I’d probably have the best expertise and the best insights into an issue that’s dear to me. I debated writing about corporate power during the Armenian Genocide era. That was something I toyed with for a bit, but I ended up landing on this piece because it was something that had just happened, and I felt like people weren’t really talking about it—and I was wondering why.

Thy Luong:

In your article, you mentioned several Armenian Americans who had negative experiences with Citibank—Alekh and Iyan, Alina Armayan, Maryse Bakian, to name a few. Could you share their stories and what happened to them?

Talish Babaian:

Of course. Just to note, I wanted to protect their identity, so I made up some of those names, with the exception of Mary, whose story is public. What was going on was that several Armenians—mainly in Glendale, which is a city in the greater Los Angeles area with a really huge Armenian population, close to 40%—were receiving letters from Citibank telling them their accounts and cards were being closed. No reasons were provided.

Talish Babaian:

There were a bunch of different stories, a bunch of different ways people were affected. Some people were being denied Bloomingdale’s gift cards because of Bloomingdale’s connection to Citibank. Others were denied SBA small business loans. One woman—who was a former Citibank employee back when it was Cal Fed—had dedicated her life to the corporation, and overnight, her accounts were closed without explanation. She had no idea why.

People would go to the bank and ask, “What’s going on here? Why is my account being closed?” There was a lot of confusion. Some people started speculating—“It’s probably because you’re Armenian.” There’s this stereotype that Armenians commit fraud. At the time, no one really knew what was going on. But people’s accounts and cards were being shut off overnight, with no explanation.

It was really difficult to navigate—especially for people whose reputations were on the line, whose bank accounts were essential to their livelihoods, their businesses, their daily lives. It was impacting a lot of people. But many didn’t come forward because they were embarrassed. Some even thought, “Maybe I did do something wrong.”

Thy Luong:

That’s very helpful in understanding the bigger picture. Can you explain a little more about what Citibank was actually doing?

Talish Babaian:

It seems like a Citibank branch that handled issuing credit cards and loans was purposely denying applications to people with Armenian last names—like mine, which typically end in “-ian” or “-yan.” Those suffixes mean “hailing from” or “son of.” So it was easy to spot Armenian names.

They were especially targeting those who lived or worked in Glendale, which—as I mentioned—is nearly 40% Armenian. By filtering for “-ian” or “-yan” names in that ZIP code, they could identify applicants and customers they deemed risky. That judgment may have stemmed from earlier fraud incidents involving other banks, like Wells Fargo, and some people at Citibank apparently decided, “Let’s just shut them all down.”

One of the attorneys I spoke to said that the decisions were probably being made in a high-rise in New York—far away from the community they were affecting. And what’s especially disturbing is that Citibank had intentionally built a branch in Glendale because of its Armenian population. They knew Armenians liked to start businesses and were family-oriented. They hired Armenian staff. They used community trust to grow their customer base.

Then, after years of benefiting from that community, they turned their backs on them.

Giovana de Oliveira:

Thank you for sharing that. I was shocked to learn how recent this was. You mention in your article that the CFPB fined Citibank in 2023. That’s incredibly recent. You also note that this might have been shocking to most Americans—but not to Armenians. Why is that?

Talish Babaian:

I’ll start with a personal anecdote. My dad had just had open-heart surgery. One day, he was taking out the trash and noticed a sticker on our trash can that said “Stupidian”—spelled like an Armenian name, with “-ian”—and it had the colors of the Armenian flag on it. It was mocking our identity.

My dad laughed it off. He’s been through far worse. He was a refugee. He’s been held at gunpoint. A sticker wasn’t going to shake him. But it was a reminder—discrimination like this still happens. Not just in banking, but in day-to-day life.

Armenians have a long history of persecution. We’re an ancient people—our history goes back nearly 4,000 years. The Armenian Genocide is one of the first things any Armenian will mention. The word “genocide” was actually coined to describe what happened to Armenians in 1915.

That year, the Ottoman Empire started targeting Armenians—rounding up intellectuals, lawyers, poets. About 1 to 1.5 million Armenians were killed or exiled. My great-grandparents were survivors. The genocide created a massive diaspora—Armenians scattered around the world.

And it didn’t end in 1915. Most recently, in the region of Artsakh (also called Nagorno-Karabakh), Armenian people were again displaced. After a long period of shelling and blockade by Azerbaijan, over 120,000 ethnic Armenians were forcibly displaced from the region in 2023.

So, yes—Citibank closing Armenian accounts was outrageous. But to many Armenians, it wasn’t shocking. It was part of a pattern we’ve seen before.

Thy Luong:

That history is so painful and so important. I honestly didn’t learn about the Armenian Genocide in school. Can you explain how Armenians were treated in the U.S. after immigrating here?

Talish Babaian:

Many Armenians came to the U.S. in the early 1900s, especially to Fresno, California. They were called racial slurs. They were treated as outsiders. Some began petitioning for legal recognition as white. In U.S. v. Cartozian, a judge said Armenians could be considered white based on religion and cultural assimilation.

But even with that legal status, Armenians were still targeted. Their names gave them away. Many changed their names—“Jermagyan” (which means “white”) became “White,” “Anushyan” (meaning “sweet”) became “Sweet.” One book described how Armenian children wished they were anything but Armenian.

Armenians were also banned from buying property under racially restrictive covenants. One Fresno home in 1952 had a deed stating it couldn’t be sold to Armenians—listed alongside Mexicans, Japanese, Black people, Filipinos, Syrians, and others.

So even after settling in the U.S., discrimination didn’t stop. It just changed shape.

Giovana de Oliveira:

Thank you for that context. Let’s return to Citibank. How has corporate law or corporate power shaped this situation?

Talish Babaian:

I spoke with two attorneys—Ara Jabakchuryan and Tamar Arminak—about this. Ara walked me through the legal framework.

One major issue is arbitration clauses. These are buried in Citibank’s customer agreements. Most people don’t read them. But by signing, customers give up their right to sue in court. They have to go through private arbitration, which favors corporations and makes class actions almost impossible.

Ara told me about McGill v. Citibank, a California case that said companies can’t contract away someone’s right to seek public injunctive relief. So while arbitration often blocks class actions, there are still ways to challenge these practices—especially under California law.

Another issue is the corporate veil. Corporations are treated as separate legal entities. That means executives and shareholders are shielded from personal liability. So when harm happens, it’s the corporation that gets fined—not the people who made the decisions.

Finally, the way corporations assess risk can be deeply discriminatory. This kind of profiling isn’t unique to Armenians. Black Americans and other minority groups have faced similar treatment in the financial system.

Thy Luong:

Thank you for explaining that. You also touched on corporate power’s role in genocide recognition. Can you talk more about that?

Talish Babaian:

Yes. Turkey still denies the Armenian Genocide. And for a long time, the U.S. wouldn’t officially recognize it either. President Obama promised to call it genocide—but didn’t. He used the Armenian word “Medz Yeghern” to avoid saying it.

Biden finally used the word “genocide” in 2021. But there was strong lobbying against recognition—especially from oil companies and defense contractors who didn’t want to jeopardize their relationships with Turkey.

There’s also corporate power involved in the recent displacement from Artsakh. Bionemat Aboughazian wrote a great article about that for The [F]law, explaining how corporate interests fueled the ethnic cleansing of Armenians in the region.

So whether it’s lobbying in D.C. or profiteering abroad, corporate power is always in the mix.

Giovana de Oliveira:

Now that we have that historical and legal context, what’s happening now? Are we seeing any legal or social responses?

Talish Babaian:

Yes. Ara Jabakchuryan was leading two class action suits. Tamar Arminak was leading another. When I visited Tamar’s office, people were coming in non-stop to share their stories.

And just recently, the Los Angeles Civil Rights Department launched an investigation into bias at multiple major banks—not just Citibank. So we’re seeing action, which is hopeful.

It’s sad that this wasn’t an isolated incident, but it’s good to see broader accountability efforts beginning.

Thy Luong:

What would a meaningful remedy look like for this kind of discrimination?

Talish Babaian:

Money damages are important—but they’re not enough. Citibank should face injunctive relief. That’s a legal order requiring them to stop discriminatory practices or do something differently—like providing clear, written reasons for account closures.

Ara even suggested holding executives criminally accountable. Tamar mentioned boycotts as another strategy—getting people to stop doing business with companies that harm them.

Ultimately, we need a mix of legal, financial, and social responses. And we need to keep talking about it—keeping public pressure on these institutions.

Giovana de Oliveira:

Totally agreed. And just to wrap up—where can listeners go to learn more?

Talish Babaian:

There’s a lot out there. A Google search on Citibank and Armenian discrimination will surface some helpful articles.

But I also want to plug my dad’s film. He’s a filmmaker, and he made a movie called After Freedom in the early 2000s. It follows a young Armenian man who immigrates to Glendale. I’m actually in the film—as a two-year-old!

Giovana de Oliveira:

Looks like I have a new movie to watch. That’s all we have time for today. Talish, thank you so much for joining us on Flaw School. We’d love to have you back anytime.

Talish Babaian:

Thank you so much for having me. This has been great.

Thy Luong:

I also want to say thank you for such a rich and meaningful conversation. I learned so much—about the law, about Armenian history, and about things we don’t talk enough about.

Talish Babaian:

Thanks to both of you. I really appreciate the opportunity.

Thy Luong:

And Giovana, thank you for being such a great co-host!

Giovana de Oliveira:

Likewise! And if you’re interested in reading Talish’s full article or learning more about the flaws in our legal system, check out The [F]law Magazine at theflaw.org.

Giovana de Oliveira:

If you enjoyed this episode, make sure to check the show notes for links and resources. Subscribe to Flaw School wherever you listen to podcasts, and visit flawschool.org for more content. Thanks for listening—and class is dismissed.

Talish Babaian

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