Reported by Financial Times

(Summary of two articles featured below. To read both reports, go to: https://www.ft.com/content/0e8a40e1-0ccd-4c45-83c5-1986d9641884 and https://www.ft.com/content/d3540c0b-a68c-484e-a628-7c720a850e0b)

The White House has ordered federal regulators to review and address alleged “debanking” practices, intensifying a political and regulatory dispute over whether banks have restricted services based on clients’ political beliefs or business activities. President Donald Trump has argued that certain financial institutions have unfairly denied access to conservatives and industries such as cryptocurrency and firearms, claiming the decisions reflect ideological bias rather than compliance risk.

The executive order directs regulators to examine both past and current policies tied to account closures, onboarding decisions, and internal guidance involving reputational or political considerations. The goal, according to the administration, is to ensure that “law-abiding individuals and businesses” are not denied banking services due to political, religious, or legal business affiliations. This move echoes long-standing complaints from conservative public figures and investors who have accused banks of discrimination masked under risk management language.

Banks, however, largely reject the claim that politics influence these decisions. They point to heightened compliance requirements associated with “politically exposed persons” (PEPs), as well as broader anti-money laundering rules. Financial institutions argue that individuals in high-profile or controversial positions present increased scrutiny, regulatory expectations, and reputational considerations that make onboarding more operationally and legally complex. Some industry groups say these rules were inconsistently interpreted in the past, leading to risk-averse decisions that could now be revisited.

In response to the executive order, the nation’s largest banks, including JPMorgan and Bank of America, have disclosed that they are cooperating with government inquiries into whether their policies created unfair barriers to access. JPMorgan noted that these matters are at different stages across reviews, investigations, and legal proceedings. This is notable given Trump’s personal accusations that JPMorgan and Bank of America declined to maintain his accounts following his exit from office in 2021, claims that helped propel the broader political debate.

The issue now sits at the intersection of financial regulation, political identity, and access to essential banking services.