Justice Department Probes 'Debanking' by Major U.S. Banks

The U.S. Justice Department has subpoenaed major banks like JPMorgan Chase and Bank of America. The inquiry seeks information on possible politically-motivated account closures, known as 'debanking'. Wells Fargo has also been contacted. This investigation follows President Trump's order against unfair financial service practices.

The U.S. Justice Department is investigating major banks such as JPMorgan Chase and Bank of America for allegedly closing customer accounts for political reasons. The subpoenas, dating back to last year, have been issued by the U.S. Attorney's Office in Washington, D.C., under Jeanine Pirro's leadership, according to sources.

The banks have been asked to provide lists of 'debanked' individuals and detailed explanations for account closures, as per reports. Wells Fargo is also under scrutiny in this matter. Neither JPMorgan nor Bank of America promptly responded to Reuters' requests for comments.

This investigation increases pressure on major banks and regulators by President Trump. He signed an executive order last year to prevent the denial of financial services to certain controversial industries, a practice also known as 'debanking'. The Office of the Comptroller of the Currency has found similar practices in U.S. banks.