White House Prepares Action Against 'Politicized Debanking' in Major Banks

The White House plans to address alleged 'politicized or unlawful debanking' practices by major U.S. banks, including JPMorgan and Bank of America. The executive order, prompted by Trump's claims of discrimination, may authorize penalties. Trump's administration contends such actions reflect conflicts of interest and regulatory overreach.

The White House is poised to tackle accusations of 'politicized debanking' involving major financial institutions, notably JPMorgan and Bank of America. President Donald Trump alleges discrimination against him and his supporters by these banks. The anticipated executive order is set to review and potentially penalize these practices.

Industry insiders suggest the announcement could come as early as this week. While Trump's claims heighten scrutiny on America's largest banks, critics argue it showcases personal biases influencing policy. Despite Trump's business interests being managed by a trust, critics emphasize potential conflicts of interest.

The controversy arises partly from Trump's allegations that top banks previously rejected his deposits, claiming political motivations behind these actions. Banks like JPMorgan assert that account closures are unrelated to politics, though they acknowledge a need for regulatory reform to clarify these financial practices.

(With inputs from agencies.)