The U.S. government is looking into JPMorgan Chase & Co. after President Trump alleged that the bank was denying services to customers with conservative political affiliations.
In its quarterly report released on Wednesday, JPMorgan acknowledged that it’s “responding to inquiries from government authorities and other external parties regarding our policies, processes, and how we serve our customers.”
The bank suggested that this investigation stems from an executive order by Trump in August, which directed regulators to examine policies that might have resulted in “politicized or illegal bank closures.”
Earlier in August, shortly after leaving office in 2021, President Trump accused both JPMorgan and Bank of America of denying him over $1 million in deposits for what he suggested were political reasons.
“I had a lot of cash ready to go, and they told me, ‘Sorry, we can’t keep you. You have 20 days to leave.’ I couldn’t believe it. I’ve been with you for 35, 40 years,” Trump recounted, referring to JPMorgan.
First Lady Melania Trump also indicated that her bank account was closed right after the January 6 Capitol riot.
In January, Trump openly criticized Bank of America CEO Brian Moynihan during the World Economic Forum in Switzerland. He asserted, “I think they should be opening up the banks to conservatives because many conservatives are frustrated that banks are blocking transactions.”
He added, “I don’t know if this is because of mandates from [President Joe] Biden or something, but what you’re doing is wrong.”
Bank of America noted in its quarterly report last week that, in light of the executive order, it is “responding to inquiries about ‘equitable access to banking.'”
Bank of America has chosen not to comment further, while JPMorgan has not provided a response to requests for comments.
Under the Biden administration, companies within certain sectors, like cryptocurrencies, and those advocating for conservative causes, such as the Second Amendment, have reported being denied banking services due to political motivation.
Bank lobbying groups argue that this situation likely arises from regulatory overreach when it comes to accepting so-called politically exposed individuals as clients.
Earlier this summer, former Kansas Governor Sam Brownback claimed that JPMorgan closed his account due to his conservative and religious beliefs, a statement which the bank disputed.
Trump’s executive order implies that regulators may be evaluating “reputational risk” as a factor in banks deciding whether to accept new customers, potentially resulting in political biases.
Trump’s order stated that victims of debankment “experience payment freezes, debt, high interest rates, and other serious effects on their lives, reputations, and financial well-being.”
As per the order, banks that deny access to customers’ deposits might face fines and other regulatory consequences.
