Federal regulators are now investigating JPMorgan Chase following allegations that the bank may have shut out customers for political or ideological reasons, an issue that gained national attention after President Donald Trump said his accounts were rejected.
In its latest quarterly filing, JPMorgan disclosed that it is “responding to requests from government authorities and other external parties regarding, among other things, the firm’s policies and processes and the provision of services to customers and potential customers.”
The statement confirms that officials are reviewing how the bank determines who can access its services.
According to the company, the review stems from an executive order Trump issued in August that directed regulators to investigate whether financial institutions had engaged in “politicized or unlawful debanking.”
Trump issued the directive after accusing major banks of closing the accounts of politically active people.
The former president claimed that soon after leaving office, JPMorgan and Bank of America refused to accept more than $1 million in deposits. “I was loaded up with cash, and they told me, ‘I’m sorry, sir, we can’t have you. You have 20 days to get out.’ I said, ‘You’ve got to be kidding. I’ve been with you for 35, 40 years,” Trump said.
First Lady Melania Trump has also said her personal bank account was closed shortly after the January 6 events at the Capitol.
In January, Trump criticized Bank of America CEO Brian Moynihan during the World Economic Forum in Davos. “I hope you start opening your bank to conservatives, because many conservatives complain that the banks are not allowing them to do business within the bank,” Trump said in a video message.
“And I don’t know if the regulators mandated that because of Biden or what…I hope you’re going to open your banks to conservatives, because what you’re doing is wrong.”
Bank of America, in its own recent report, confirmed that it is “responding to demands and requests regarding ‘fair access to banking’” as part of the same inquiry. The bank declined to comment, and JPMorgan did not respond to media questions.
Over the last five years, businesses connected to cryptocurrency, gun rights advocacy, religion, or conservative political movements have reported losing access to banking services. These closures were often attributed to so-called “reputation risk” concerns.
Banking associations argue that regulatory pressure surrounding politically exposed clients has caused institutions to become overly cautious about whom they accept.
Trump’s executive order directs agencies to examine how “reputation risk” policies have been used to justify closing accounts for customers with controversial views.
The order noted that those affected have “suffered frozen payrolls, debt and crushing interest, and other significant harms to their livelihoods, reputations, and financial well-being.”
If regulators determine that banks discriminated against customers for political reasons, financial institutions could face fines or enforcement measures.
