President Donald Trump is expected to announce an executive order aimed at prompting banks to discriminate against conservative groups and cryptocurrency businesses.
Reports suggest that the Trump administration is preparing to instruct bank regulators to investigate potential violations of the Equal Credit Opportunity Act, Antimonopoly Act, and Consumer Finance Protection Act by financial institutions. Institutions found to have breached any of these laws could face financial penalties or be required to sign consent forms.
The order will mandate that any suspected violations be reported to the Attorney General. In April, the Justice Department initiated a task force to look into claims of service removal based on what it calls “unacceptable factors.”
An instance mentioned in the draft order involves Bank of America, which reportedly closed accounts belonging to a Christian organization in Uganda, citing that it was not focused on supporting small businesses abroad.
Additionally, the order appears to target banks involved in investigations related to the January 6, 2021 protests.
Banks often navigate legal and regulatory risks, particularly regarding U.S. money laundering laws and informal guidelines addressing “reputation risk,” which push them to sever ties with what they perceive as risky clients.
Conservatives have claimed for some time that banks deny services for political or religious reasons.
The FDIC, the OCC, and the Federal Reserve have stated that they will not incorporate reputational risk into their regulatory practices; however, making this a legal standard would require legislative action.
The Breitbart News Fight Club outlines five strategies the Trump administration could utilize to prevent government-driven intervention.
A Bank of America representative expressed openness to regulatory clarity, stating, “We will continue to collaborate with the administration and Congress to enhance our regulatory framework.”
A spokesperson for JPMorgan Chase claimed that the bank is committed to ensuring fair access to banking, denying that they have closed accounts for political or religious reasons. “We will not terminate accounts for political purposes. I share President Trump’s concerns about the necessity for regulatory reform and appreciate the White House’s attention to this matter. We look forward to partnering to address it,” the spokesperson stated.
