Federal prosecutors have issued extensive subpoenas to major banks like JPMorgan Chase & Co., Bank of America, and Wells Fargo in a criminal investigation. This inquiry centers on whether these institutions have, as some sources describe, “robbed” customers’ bank accounts for political motives.
The subpoenas, coming from U.S. Attorney Jeanine Pirro’s office in Washington, D.C., require the banks to compile a list of clients whose accounts have been blocked and to provide explanations for these closures.
This investigation, reported initially by the Wall Street Journal, is seen as a response to President Trump’s ongoing rhetoric against the banking sector, which he claims has marginalized conservatives, including his own family.
Previously, Trump has alleged that JPMorgan and Bank of America closed his accounts and refused to establish new ones following the events of January 6, 2021. In January, he filed a lawsuit against JPMorgan and its CEO, Jamie Dimon, regarding those account issues. Furthermore, the Trump family has previously sued Capital One, claiming that over 300 accounts tied to Trump’s businesses were put on hold in 2021.
Melania Trump, the First Lady, also reported that her account was closed shortly after January 6.
Both banks assert that they have not acted unlawfully and do not make decisions based on politics or religion. They pointed to anti-money laundering regulations and pressures from regulatory bodies as reasons for their actions.
However, JPMorgan admitted in court documents earlier this year that it had closed accounts belonging to Trump and some related businesses starting on January 6.
Representatives from JPMorgan, Bank of America, and Wells Fargo chose not to comment on this matter when approached.
Pirro’s team is looking into potential violations under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, a significant fraud law that has been used against banks following the 2008 financial crisis.
This law is appealing for prosecutors, as it is broad and has a 10-year statute of limitations, which could cover the account closures post-January 6.
One of the main challenges of this investigation lies in identifying any specific law that may have been violated by the banks.
Civil rights statutes do prevent discrimination in lending, yet banks possess considerable discretion regarding their business relationships, and regulatory obligations may compel them to avoid customers they consider too risky.
Critics of this investigation have described it as misguided, arguing that Pirro is “grasping at straws” by attempting to hold banks accountable simply for adhering to federal regulations.
It’s clear, however, that federal authorities believe there is tangible evidence. The Office of the Comptroller of the Currency stated last December that it found initial proof that the largest banks were blocking accounts in certain sectors, including oil, gas, coal, firearms, and adult entertainment.
Officials highlighted the banks’ own reports that emphasize their commitments to climate change and racial justice.
Previously, enforcement had been under the OCC’s jurisdiction following an executive order from Trump aimed at regulating “politicized or illegal bank terminations.” While that order directed regulators to escalate these cases to the attorney general, none did. Pirro’s office has since initiated its own inquiry, though reports indicate a coordination between her office and the OCC.
In the backdrop of this investigation, Pirro has returned to familiar territory.
Democratic officials criticized the investigation into former Fed Chairman Jerome Powell regarding a sizable $2.5 billion restructuring by the central bank, viewing it as political fallout. A federal judge eventually annulled his subpoena, leading to the closure of that investigation.
Notably, prosecutors Carlton Davis and Stephen Vandervelden, who are currently handling the de-banking investigation, visited the Fed’s construction site unannounced during this time.
Trump has been openly critical of large banks, advocating for increased access for conservatives and specifically addressing Bank of America’s Moynihan during the World Economic Forum last year.
