Financial institutions are under heavy pressure from Washington as regulators demand answers about how and why they have been cutting off customers due to political or religious affiliations.
The unusual, wide-ranging investigation is part of President Trump’s pledge to stop what has been labeled debanking.
The Justice Department is working alongside federal regulators to determine if account closures or loan denials may have violated civil-rights protections, including the Equal Credit Opportunity Act.
Agencies are reaching deep into the past, requesting records that span multiple years. According to people familiar with the plans, the Federal Deposit Insurance Corp. could begin issuing letters to major banks this week.
The Wall Street Journal reported that the Office of the Comptroller of the Currency already confirmed it has contacted the nine largest banks under its watch, promising to “end the weaponization of the financial system.”
Smaller lenders are not exempt.
The Small Business Administration told more than 5,000 banks and financial firms to review old decisions and identify cases where individuals may have been denied service for political reasons.
By December 5, those institutions are expected to offer account reinstatements and reconsider past applicants. The SBA letter, seen by the Journal, warns that failing to act could lead to “referral to the U.S. Attorney General for appropriate civil action.”
The drive stems from an executive order Trump issued in August, “guaranteeing fair banking for all Americans.”
It directed agencies to punish discrimination in financial services and authorize fines against violators.
Trump has described the issue as personal, saying JPMorgan Chase and Capital One closed accounts tied to him and his family after he left office in 2021, and that Bank of America rejected his attempts to open new ones.
Melania and Barron Trump were also reportedly impacted.
Banks, for their part, deny targeting customers for their beliefs. They argue decisions often stem from risk assessments or regulatory expectations.
In some cases, lenders said government pressure during the Biden administration led them to distance themselves from sectors such as firearms or fossil fuels to align with environmental, social, and governance priorities.
Regulators are now reviewing whether their own guidance may have pushed banks into account closures.
