Trump orders federal regulators to punish banks that discriminate against conservatives
FILE - U.S. President Donald Trump signs a National Purple Heart Day Proclamation during an event to honor recipients of the Purple Heart in the East Room of the White House on August 07, 2025 in Washington, DC. (Photo by Anna Moneymaker/Getty Images
WASHINGTON - President Donald Trump on Thursday signed an executive order that would mandate a probe into whether banks have discriminated against conservatives and other industries such as gun manufacturers and cryptocurrency companies.
The executive order deals with an issue known as "debanking," which is when banks close accounts of individuals or decline to go into business with certain industries.
Trump has accused JPMorgan and Bank of America of debanking him and his companies in the past, something both banks have denied.
Trump alleges politically-motivated debanking
Dig deeper:
Trump ordered federal bank regulators to make sure banks do not discriminate against individuals or companies for their political or religious beliefs.
He also ordered bank regulators to probe when banks may have allegedly discriminated and refer the cases to the Department of Justice.
The move could open banks to potential civil or criminal investigations, fines or punishments.
The backstory:
This type of government-directed debanking is also known as reputational risk, where the historic reputation of an industry prompts banks to be more careful about banking and lending.
Historic examples include entities who did business in high-risk countries, did business largely in cash or were repeatedly flagged by bank regulators.
Conservatives have argued that reputational risk has become an umbrella term that allows banks to discriminate.
The other side:
The banking industry insists it does not actively debank and does not target specific industries or individuals. Banks have already been removing any mention of reputational risk from their policies and procedures, particularly since Trump returned to the White House.
What they're saying:
"We don’t close accounts for political reasons, and we agree with President Trump that regulatory change is desperately needed," said a spokeswoman for JPMorgan Chase.
The Source: Information for this article was taken from The Associated Press.