âť“WHAT HAPPENED: President Donald J. Trump criticized major banks for allegedly discriminating against conservatives through debanking, where financial institutions close or refuse accounts.
👤WHO WAS INVOLVED: Donald Trump, JPMorgan Chase, Bank of America, and other financial institutions. Bank of America CEO Brian Moynihan also commented on the issue.
đź“ŤWHEN & WHERE: Comments were made during an interview with CNBC on August 5, following reports of a potential executive order addressing debanking.
đź’¬KEY QUOTE: “They discriminated against many conservatives,” said President Trump during the CNBC interview.
🎯IMPACT: The issue highlights growing concerns over political bias in financial services, with calls for regulatory clarity and fair market access.
President Donald J. Trump confirmed on August 5 that he will soon sign an Executive Order targeting major banks that discriminate against conservatives through debanking practices. In his comments made Tuesday, Trump claimed JPMorgan Chase gave him 20 days to close his account, though he did not specify the timing or reasoning behind the decision. He also stated that Bank of America refused to do business after he left JPMorgan.
The issue of debanking has been raised by conservatives who argue that financial institutions are unfairly targeting individuals based on political views. While banks often cite regulatory compliance or risk management as reasons for account closures, Trump and others believe these explanations mask ideological discrimination. “They discriminated against many conservatives,” Trump said.
Bank of America CEO Brian Moynihan, in an earlier interview on CBS News’ “Face the Nation,” denied allegations of bias. Moynihan emphasized regulatory pressures and risk management as key factors in banking decisions. “We look at it based on risk. People may feel those decisions are made for some other reason, but we always make it on what’s best for our company, what’s best for our client,” he said.
The practice of debanking has also been criticized in Congress. During a Senate hearing in February, Senator Tim Scott of South Carolina argued that debanking harms individuals and the economy, violating principles of fair market access. Crypto investors have also testified about abrupt account closures, claiming bias against cryptocurrency transactions.
JPMorgan Chase and Bank of America have both denied closing accounts for political reasons. JPMorgan stated, “We agree with Mr. Trump that regulatory change is desperately needed,” while Bank of America reiterated that political beliefs are not a factor in account closures.
The National Pulse reported in March that Brexit leader Nigel Farage successfully resolved his long-standing debanking dispute with NatWest Group, nearly two years after the closure of his accounts at the bank’s Coutts subsidiary. The settlement, which includes an apology from NatWest, brings closure to a saga that led to the resignation of the bank’s former chief executive, Dame Alison Rose, in 2023.
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