Executive Order Targets Debanking
Earlier this month, President Trump signed an executive order directing federal regulators to investigate and punish banks that illegally discriminate against conservatives with fines and other penalties, continuing his administration’s campaign against debanking. Many of the policy changes build on efforts that have already been enacted by Trump-appointed regulators at banking agencies.
“Individuals, their businesses, and their families have been subjected to debanking on the basis of their political affiliations, religious beliefs or lawful business activities, and have suffered frozen payrolls, debt and crushing interest, and other significant harms to their livelihoods, reputations, and financial well-being,” Trump said, in the order.
Conservatives allege that they have been treated unfairly by the banking system, notably when accounts that banks consider risky are closed with little to no notice. The Hill noted that the crypto industry has also alleged that it was unfairly denied access to the banking system, and thus has shown widespread support of Trump’s order.
According to Politico, Trump himself accused Bank of America and JPMorgan Chase of rejecting over $1 billion of his deposits, alleging that he was targeted for political reasons. “I had hundreds of millions. I had many, many accounts loaded up with cash, loaded up with cash, and they told me, ‘I’m sorry sir, we can’t have you. You have 20 days to get out,’” he said.
The executive order calls on the Small Business Administration (SBA) to instruct the institutions under its oversight to identify clients that were denied services through a “politicized or unlawful debanking action” and reinstate them. Banking regulators are also to remove “reputation risk” from guidance used to examine financial institutions.
“It is the policy of the United States that no American should be denied access to financial services because of their constitutionally or statutorily protected beliefs, affiliations, or political views, and to ensure that politicized or unlawful debanking is not used as a tool to inhibit such beliefs, affiliations, or political views,” Trump said.
