Debanking the controversial practice of banks allegedly denying services based on political beliefs has returned to the national spotlight following fresh accusations from President Donald Trump.
Speaking on CNBC’s Squawk Box Tuesday, Trump claimed that the country’s two largest banks, JPMorgan Chase and Bank of America, rejected him as a customer despite his longstanding ties and financial strength.
“The banks discriminated against me very badly, and I was very good to the banks,” Trump said. “They discriminate against many conservatives.”
The president detailed his experience, saying JPMorgan forced him to close accounts holding vast sums of money. “I had hundreds of millions. I had many, many accounts loaded up with cash. 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.”
After that, Trump said he attempted to open a new account with Bank of America, intending to deposit over a billion dollars — but was again turned away.
“He said, ‘We can’t do it,’” Trump recalled, referencing Bank of America CEO Brian Moynihan. The president blamed regulatory pressure from Washington, D.C., for the denials. “I ended up going to small banks all over the place,” he added.
The remarks came on the heels of a Wall Street Journal report that the White House is drafting an executive order aimed at penalizing banks for debanking based on political affiliation. The order would reportedly introduce fines for institutions found guilty of political discrimination.
JPMorgan responded swiftly to Trump’s claims, denying political bias. “We don’t close accounts for political reasons, and we agree with President Trump that regulatory change is desperately needed. We commend the White House for addressing this issue and look forward to working with them to get this right,” the bank said in an emailed statement.
Bank of America did not issue a comment. Trump first raised the issue publicly in January at the World Economic Forum in Davos, Switzerland, during a Q&A session with Moynihan.
“I hope you start opening your bank to conservatives,” Trump said, adding, “I don’t know if the regulators mandated that because of Biden or what, but you and Jamie and everybody else, I hope you open your banks to conservatives, because what you’re doing is wrong.”
In March, the Trump Organization sued Capital One, accusing the lender of debanking hundreds of accounts following the January 6 Capitol riot.
Bank regulators have since removed “reputational risk” from supervisory guidelines — a factor many blame for allowing excessive regulatory discretion. Industry groups, like the Bank Policy Institute, have applauded efforts to reform these practices.
“The heart of the problem is regulatory overreach and supervisory discretion,” said a BPI spokesperson. “We’re hopeful any forthcoming executive order will reinforce this progress.”
Both JPMorgan CEO Jamie Dimon and Bank of America’s Moynihan have emphasized the need for clearer regulatory standards, denying any political motivations behind account closures.