❓WHAT HAPPENED: President Donald J. Trump signed an executive order outlawing debanking practices. Senior banking executives have since revealed that the Biden and Obama governments pressured them to debank customers.
👤WHO WAS INVOLVED: Banking executives, President Donald J. Trump, and former Presidents Obama and Biden.
📍WHEN & WHERE: From the Obama administration to the present day, in the United States.
💬KEY QUOTE: “Those pressures were very, very real. When your regulator gives you a suggestion, it’s not a suggestion, it’s an order.” – Senior Banking Executive
🎯IMPACT: President Trump’s order aims to prevent banks from denying services based on political views, addressing concerns of political discrimination.
In the wake of President Donald J. Trump’s executive order banning “debanking,” top banking executives have alleged that both the Barack Obama and Joe Biden regimes pressured financial institutions to cut off services to individuals and industries based on political or ideological views.
“Debanking,” the practice of closing bank accounts or denying services, often without explanation, has drawn growing criticism from conservatives and religious groups in recent years. Although linked initially to anti–money laundering regulations, it is now being weaponized for political discrimination.
Two anonymous executives from major U.S. banks said regulators exploited vague federal laws to push banks to deny services. They pointed to programs like “Operation Choke Point,” launched under the Obama regime to target fraud-prone industries, as laying the groundwork. That pressure, they said, continued under Biden.
“Those pressures were very, very real. When your regulator gives you a suggestion, it’s not a suggestion, it’s an order. The political stuff is very real, those pressures are real,” one of the senior executives said.
President Trump has issued an executive order prohibiting banks from denying services based on political beliefs. The order directs federal agencies to investigate claims of politically motivated debanking.
JPMorgan Chase and other major financial institutions have updated internal policies, stating they do not close accounts based on political affiliation. Still, bank executives said that regulators continue pressuring them to flag “suspicious activities,” potentially resulting in indirect debanking.
Trump’s own businesses became the subject of a high-profile debanking case. In March 2025, the Trump Organization sued Capital One, alleging that over 300 business accounts were closed in 2021 due to “unsubstantiated, ‘woke’ beliefs.” The lawsuit alleged the bank believed “the political tide at the moment favored doing so.” Trump’s team said the closures caused “considerable financial harm.”
Debanking has also been used against populists internationally. In the United Kingdom, Reform Party leader Nigel Farage was debanked by Coutts, which claimed his views were “not compatible” with the bank’s values. After public backlash and an attempt to deceive the press about the reasons for the account closure, the bank apologized and paid Farage a settlement.
Join Pulse+ to comment below, and receive exclusive e-mail analyses.
