Trump Targets Banks Over Alleged Political Bias

The White House is set to act against banks allegedly dropping customers for political reasons, following Trump's claims of being discriminated against by major banks. A potential executive order could authorize penalties for 'politicized or unlawful debanking.' Industry discussions have focused on reputational risks and regulatory changes.

The White House is on the verge of taking action against banks accused of politically motivated customer debanking, according to sources. This move comes after former President Donald Trump alleged discrimination by major banks like JPMorgan and Bank of America.

A draft executive order, reviewed by Reuters, directs regulators to assess banks for 'politicized or unlawful debanking.' The proposed order could impose financial penalties on violators and is expected to be announced soon, according to industry insiders.

This development highlights ongoing tensions between Trump's business interests and regulatory policies, with debates around reputational risks and regulatory oversight gaining prominence amid scrutiny of banking practices.