White House Ready to Fine Banks for Political Discrimination Against Conservatives

The White House is gearing up to crack down on banks that cut off customers for political reasons, targeting financial institutions with potential fines and investigations. A draft executive order, expected to be signed this week, directs regulators to hunt for violations of credit and antitrust laws if banks drop clients based on their political beliefs.

This move responds to growing complaints from conservatives and crypto companies who say banks have shut them out, sometimes citing vague “reputational risks.” The draft references cases like Bank of America closing accounts of a Ugandan Christian group due to religious beliefs, a claim the bank disputes, saying it doesn’t serve small foreign businesses.

President Trump shared his own experience of being dropped by banks like JPMorgan Chase, accusing them of discrimination despite his loyalty. A JPMorgan spokeswoman denied politically motivated closures but agreed regulatory reform is needed.

The order would also force banks to revise policies that might encourage such discrimination and involves the Small Business Administration reviewing banks it guarantees loans with. It signals the administration’s intent to protect conservative clients and crypto firms, pushing back against what they see as unfair financial gatekeeping.

Banks, meanwhile, insist their decisions are driven by legal compliance, especially anti-money laundering rules, and have already started updating policies to avoid discrimination allegations.

Source: Wall Street Journal