Nine Major Banks Accused of Unfair Practices

Nine of the country’s largest banks, including JPMorgan Chase and Bank of America, are accused of unfairly cutting ties with a variety of politically controversial industries, such as coal, tobacco, and private prisons, according to key banking regulators.

This information comes from a report by the Office of the Comptroller of the Currency, which aligns with claims made by President Trump regarding what his administration described as “politicized or illegal bank closure activities.”

The term “debanking” refers to instances where a bank terminates an account or denies services to a customer.

Along with JPMorgan and Bank of America, other banks cited in the report include Citibank, Wells Fargo, US Bank, Capital One, PNC Bank, TD Bank, and BMO Bank.

Each of these institutions has previously denied claims about closing accounts based on political motives.

“It’s unfortunate that the largest banks in the country view these detrimental unbanking policies as a valid exercise of their charters and market power,” stated Jonathan Gould, the comptroller appointed by Trump.

The report indicated that a range of sectors, from gun manufacturers to oil and gas, were affected, though it did not specify the names of the impacted parties.

The findings particularly examined banks’ decisions related to environmental policies and sustainability, which were influenced by investors urging action on climate change and social equity. However, the report didn’t conclude these practices were illegal.

“While many of these policies were clearly announced, some banks maintain that they aren’t involved in debanking,” Gould mentioned. “Moving forward, the OCC will ensure accountability and prevent any illegal bank closures.” The banks have reiterated that they don’t close accounts for political or religious reasons.

Earlier this year, Trump openly criticized banks, including Bank of America, during a speech at Davos.

Banks have argued that their choices to avoid certain industries relate to legal requirements for monitoring criminal activities and money laundering.

Additionally, they contend that they’re responding to regulatory pressures intended to protect their operations.

The Banking Policy Institute, a lobby for the banking sector, expressed support for new regulations to guarantee fair access to banking services.

“It’s in banks’ best interests to serve as many customers and businesses as possible for economic growth,” the group stated.

In August, the White House issued an executive order accusing banks of discriminating against conservatives and cryptocurrency businesses, threatening fines for lenders who dropped clients for political reasons.

Trump claimed that after leaving office following the January 6, 2021, Capitol riot, his and his businesses’ bank accounts were blocked. This concern led him to confront Bank of America’s CEO during an online talk in Davos earlier this year.

Since then, the issue of debanking has continued to be a significant point of tension between banks and the White House, which is pursuing a deregulatory agenda that favors the banking industry.

The Office of the Comptroller of the Currency recently released initial findings after requesting reports from the nine banks it supervises regarding the alleged illegal bank closures.

The investigation is still ongoing, and its findings may be forwarded to the attorney general.