Ken Sweet, Associated Press
NEW YORK (AP) — President Donald Trump on Thursday signed an executive order mandating that requires a look into whether banks discriminate against conservatives, gun makers and certain industries like cryptocurrencies, evoking enormous powers to chase the Republican president said he discriminated against him and his allies.
The executive order deals with an issue known as “debanking,” when banks close individuals or refuse to work in business with certain industries. Trump accused JpMorgan and Bank of America of describing him and his company in the past.
Trump has ordered federal bank regulators to prevent banks from discriminating against individuals and businesses due to political or religious beliefs. He also ordered bank regulators to investigate if the bank was said to be discriminated against, and referred the case to the Department of Justice.
The move could open the bank to potential civil or criminal investigations, fines or punishments.
When Trump and his party discuss leaving, they usually refer to closing banks that close people and company accounts when they don’t want to do business with them. Banks usually say they close their accounts or refuse loans because individuals or businesses are considered too dangerous. The banking industry has argued that if it does not violate laws like the Equal Credit Opportunity Act, it has a constitutional right to have constitutional rights.
The TH Act, which was part of several laws signed during the Civil Rights Movement, prohibits banks from discrimination based on race, ethnicity, religion, gender, or other protected status.
Another type of desertion is when government regulators instruct banks to avoid business with industry and individuals. Democrat President Barack Obama’s Justice Department has told Banks to avoid business in “high-risk” industries, including payday lenders and firearms makers.
This type of government-oriented decanking is also known as a reputational risk. The industry’s historic reputation encourages banks to pay attention to banks and lending. Historic examples include entities that have done business in high-risk countries, primarily cash, or have been repeatedly flagged by banking regulators.
Conservatives argue that reputational risk has become an umbrella term that allows banks to discriminate. The banking industry claims it does not actively condemn it and does not target specific industries or individuals. The bank has already removed mentions of reputational risk from their policies and procedures, particularly since Trump returned to the White House.
“We will not close our explanation for political reasons. I agree with President Trump that there is a desperate need for changes in regulations,” a JPMorgan Chase spokesperson said.
The Obama administration’s government-oriented departure was a rallying cry for conservatives. This is one of the reasons why the cryptocurrency industry supported Trump in 2024. The Biden administration did not force banks to condemn the crypto industry, but Democrat Joe Biden’s bank regulators have expressed several public concerns about it. That phrasing by the Biden administration was often referred to as “Operation Chalk Point 2.0” by Trump and his allies.
Republicans have introduced legislation to reduce suspicions of defiling. Sen. Tim Scott of South Carolina, chair of the Senate Banking Committee, has introduced legislation requiring bank regulators not to take reputational risks anymore as a factor in how banks measure health and risk profiles.
Original issue: August 7, 2025, 4:12pm EDT
