Trump Signs Executive Order to Protect Financial Access

On Thursday, President Trump signed an executive order aimed at preventing banks from denying financial services to individuals based on their political beliefs or lawful business activities.

“It is U.S. policy that Americans should not lose access to financial services due to their constitutional or legally protected beliefs and affiliations,” he emphasized. The idea is to avoid politicization or any form of illegal discrimination from hindering these rights.

He further stated, “Bank decisions should be grounded in personalized, objective, risk-based analyses.”

Earlier this week, Trump claimed that JPMorgan Chase and Bank of America had refused to accept over $1 billion in deposits due to political reasons. He expressed to CNBC, “The bank discriminated against me very seriously.”

Former Kansas Governor Sam Brownback, a Republican, recently alleged that he was “evacuated” from JPMorgan due to his conservative religious views, a claim the bank has rejected.

Additionally, there are accusations that these banks have closed accounts of clients involved in cryptocurrency and those who support conservative issues, such as Second Amendment rights.

Trump noted that those affected “are facing frozen salaries, debt, and serious damage to their financial standing and reputations.”

He described discriminatory banking practices as “illegal,” stressing that the provision of banking services should be based on actual, measurable risks.

The executive order instructs banking regulators to eliminate concepts like reputational risk from federal guidelines and encourages small business managers to assist those wrongfully accused.

The president has also tasked Treasury Secretary Scott Bescent with developing strategies to tackle these discriminatory practices, either through legislation or new regulations.

Banks involved in discriminatory actions may face fines or penalties from regulatory agencies as stated in the order.

Trump has directed bank regulators to investigate complaints regarding account removals and to pass on any potentially illegal actions to the Justice Department.

Major banking organizations have expressed support for Trump’s executive order. The Bank Policy Institute, along with other associations, noted that “today’s order helps ensure that all consumers and businesses are treated fairly.”

The group stated, “It is in the bank’s best interest to accept deposits, lend, and support as many customers as possible.” However, they pointed out that regulatory overreach and ambiguous rules complicate this process.

They further appreciated the efforts to enhance access to banking and reduce unnecessary restrictions, expressing eagerness to collaborate with the White House and Congress to set national standards promoting these objectives.