U.S. regulators are intensifying scrutiny of banks over alleged account closures tied to political or religious beliefs, following President Trump’s executive order aimed at curbing so-called “debanking.” The inquiries span the nation’s largest financial institutions as well as thousands of smaller lenders.
- The Federal Deposit Insurance Corp. is preparing letters to large banks requesting years of data on account closures.
- The Office of the Comptroller of the Currency has sent requests to the nine largest banks it oversees, citing the need to end “weaponization of the financial system.”
- The Small Business Administration sent letters to more than 5,000 banks and lenders, directing them to identify and re-engage with customers cut off for political reasons by Dec. 5, or face potential referral to the U.S. Attorney General.
- Trump’s August executive order mandates regulators to investigate and penalize banks found to discriminate, with possible fines and disciplinary actions.
- Trump has publicly accused JPMorgan Chase, Capital One, and Bank of America of shutting down or denying accounts for him and his family after 2021; the banks deny discrimination.
- Regional and community banks are concerned about compliance challenges, given limited resources and vague timelines for reviews.
- Banks had already begun adjusting policies earlier this year to avoid allegations of discrimination against industries like firearms and oil and gas.
Relevant Companies
- JPMorgan Chase (JPM) – Alleged by Trump to have closed accounts, now under federal inquiry.
- Capital One (COF) – Named by Trump as having shut down family accounts.
- Bank of America (BAC) – Accused of denying new accounts for Trump and his businesses.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
