US banks are now under federal investigation for wrongfully closing accounts according to the Justice Department.
Federal prosecutors have subpoenaed Bank of America, JPMorgan Chase, and other major lenders to identify whether accounts were closed due to political reasons.
“Jeanine Pirro, the US Attorney for the District of Columbia, is seeking records that could show whether customers had accounts closed because of their political beliefs rather than legitimate banking concerns,” reported TheSun.
The Wall Street Journal reported that the DOJ is requesting information about whether they “debanked” clients, or improperly closed customer accounts for political reasons, according to people familiar with the matter.
The subpoenas from the U.S. Attorney’s Office in Washington, D.C., headed by Jeanine Pirro, escalate a campaign by President Trump to root out evidence that banks allegedly discriminated against conservatives and politically controversial industries, including his own family.
Trump has repeatedly claimed he and other conservatives were unfairly targeted by banks following the January 6, 2021 Capitol riot.
Last August, the president signed an executive order directing banking regulators to investigate alleged “politicized or unlawful debanking” and take action where appropriate.
In the order, Trump said, “Such practices are incompatible with a free society and the principle that the provision of banking services should be based on material, measurable, and justifiable risks.”
The Office of the Comptroller of the Currency (OCC) is joining the investigation.
The OCC previously released a preliminary report saying it had found early evidence of debanking among the country’s nine biggest banks.
According to the agency, some industries affected included oil and gas, coal, firearms manufacturers, and the adult entertainment business.
These actions could mean serious troubles for the banks.
Pirro’s office is examining whether these banks’ actions could have violated federal laws, including the Financial Institutions Reform, Recovery and Enforcement Act of 1989.
Statements from US Banks
US banks have strongly denied closing accounts due to customers’ politics or religious beliefs.
Earlier this year, JPMorgan said, “Our company does not close accounts for political or religious reasons. We do close accounts because they create legal or regulatory risk for the company. We regret having to do so, but often rules and regulatory expectations lead us to do so.”
The bank has also dismissed Trump’s lawsuit against it as having “no merit.”
The Trumps Go On The Offense Against US Banks
Source: Bloomberg – Trump Jamie Dimon Lawsuit. US banks are now under investigation.
The latest U.S. bank investigation comes after president Trump personally sued JPMorgan Chase and its chief executive Jamie Dimon for $5 billion in January.
Trump alleged that the bank dropped him for political reasons after his first administration ended.
In a separate lawsuit, the Trump Organization sued Capital One last year, accusing the bank of closing more than 300 Trump-linked accounts in 2021 without reason.
His son, Eric Trump, executive vice president of the Trump Organization, said the move was a “clear attack on free speech and free enterprise that flies in the face of the bedrock principles and freedoms that define our country.”
“Moreover, the arbitrary closure of these accounts, without justifiable cause, reflects a broader effort to silence and undermine the success of the Trump Organization and those who dare to express their political views.”
Capital One also denied closing bank accounts due to political views.
Frank Nez is an American entrepreneur, journalist, writer, and investor. Frank's work has been cited by SEC and Congressional reports. Franknez.com is a personal finance and market news publication, dedicated to publishing content on money, investing, entrepreneurship, and retail investor news.
