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The White House ordered regulators to consider and modify what is called a stripping habit, strengthening the dispute between President Donald Trump and a large US lender who claims to discriminate against conservatives.
In an executive order issued Thursday, the White House requested that federal bank regulators formally review “past or present, formal or informal, practice, practice, or practice” and collect fines and other disciplinary actions, as needed, leading to “politicization or illegal deconking.”
The move follows a months-long attack on banks by Trump, accusing him of refusing to serve certain clients, including conservatives and cryptocurrency services, for political reasons.
“Financial institutions engage in unacceptable practices to limit access to financial services by law-abiding individuals and businesses based on political or religious beliefs or legitimate business activities,” the order said.
Earlier this week he bumped into Bank of America CEO Brian Moynihan. He said he personally refused to open a bank account after his account was closed by JPMorgan after his departure from the White House in 2021.
In an enforcement order, Trump claimed some of the financial institutions that participated in a “Government-Oriented Surveillance Program” targeting conservatives and their allies following the attack on the US capital on January 6, 2021.
This came after previous democratic administrations proposed that financial institutions flag certain payments that include the terms “Trump” or “Maga,” he said.
The president’s claims reflect complaints from prominent conservatives and tech investors about industries that have accused US banks of discriminating against them in recent years, and have sought scrutiny of regulations such as code and oil.
Lenders primarily reject these claims and point out strict compliance rules that they must take into account when doing business with new clients instead.
In the early months of the Trump administration, regulators removed the risk of reputation as a bank’s supervision area. This is the focus that some Republican lawmakers argue is being used as an excuse to deny bank access to conservatives. Additionally, Thursday’s executive order formally called for regulators to remove the principle.
Lenders have publicly welcomed Trump’s efforts on this. Moynihan said Tuesday that the president was “after the right thing” and supported plans to introduce new rules.
Trump’s crusades have caused sectoral changes. Citigroup in June eliminated restrictions on doing business with several firearm dealers installed after the 2018 Parkland shooting in Florida.
The Bank Policy Institute, an industry lobby group, thanked the government for “thank you for your efforts to protect access to banks and curb the governance of runaway regulations.”
“Today’s executive orders help ensure that all consumers and businesses are treated fairly. This is a goal that national banks share with their administration,” the Institute said. “It is the bank’s greatest profit to receive deposits, lend and support as many customers as possible.”
Additional Reports by Joshua Franklin
