Trump Accuses Leading US Banks Of Political Bias And Debanking

President Trump has alleged that two of America’s largest banking institutions, JPMorgan Chase and Bank of America, have refused to do business with him due to political motivations. During an interview with CNBC, Trump explained he had been pushed towards seeking smaller banking partners as a result of what he claims is discrimination against both himself and his supporters.

Trump stated he was informed by his own advisers that JPMorgan instructed him to close long-standing accounts within twenty days. He also claimed Bank of America declined his attempt to make a deposit exceeding $1 billion. No clear timeframe was given for these incidents, but Trump asserted that bank regulators during the Biden administration were directed to take action against him specifically.

Financial regulators in the United States have, under Biden’s leadership, required banks to take account of ‘reputational risk’ when reviewing customers. This policy faced significant criticism amid broader concerns about the practice known as ‘debanking’ — the closure of accounts to avoid reputational harm to financial institutions. High-profile companies, such as the cryptocurrency exchange Coinbase and firearms manufacturer Sturm Ruger, have also claimed their banking services were restricted for perceived reputational risk reasons.

Recently, the Federal Reserve Board announced the removal of reputational risk from its key examination procedures following industry backlash. Banks deny engaging in debanking for political or ideological reasons. JPMorgan, when contacted, stated, “We do not close accounts for political reasons, and we agree with President Trump that urgent regulatory reform is needed.” The company added that it looks forward to collaborating with the White House on these changes. Bank of America declined to comment on the specific claims.

The Wall Street Journal has reported that an executive order may soon direct financial regulators to investigate whether banks are violating the Equal Credit Opportunity Act or competition law by closing accounts for political purposes. This order could introduce financial penalties and other disciplinary actions for transgressions in this area. At the time of writing, there has been no formal response from the White House regarding the proposed executive order.