US Treasury report finds major banks let politics influence banking services

The Treasury Department’s Office of the Comptroller of the Currency (OCC) has found that the nine largest national banks in the United States allowed political considerations, public pressure, and social concerns to influence decisions about who received banking services. The report, released Wednesday, examined nearly 100,000 complaints and about 420,000 pages of documents from banks including JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC Bank, TD Bank, and BMO Bank.

Findings on Reputation Risk

The OCC determined that all nine banks used “reputation risk” policies that lacked “clear,” “objective” standards. According to the regulator, these policies could disadvantage customers based on their political or religious views or lawful business activities. Comptroller of the Currency Jonathan Gould stated, “Banks should make decisions based on financial risk, not the political or social preferences of their employees or executives.”

The review was conducted following an executive order signed by President Donald Trump in August of last year, which stipulated that Americans should not be denied access to financial services due to religious or political beliefs. Gould said the named banks “denied, debanked and discriminated against customers and lawful businesses.”

Specific Cases and Bank Responses

The report highlighted specific instances of alleged political bias. It noted that JPMorgan subsidiary WePay closed accounts belonging to merchants selling Trump and conservative merchandise. An internal screening list included terms such as “MAGA,” “Make America Great” and “America First,” despite the OCC finding no formal written standards for determining when flagged material amounted to prohibited hate or violence.

JPMorgan told CNBC that its policies prohibit discrimination based on political or religious views and that WePay’s process “did not meet our expectations.” The bank stated it fixed the issue and has since shut down the business. Citi declined to comment, while other banks did not immediately respond to requests for comment.

The report also identified examples cutting in the opposite political direction. Capital One declined relationships with an abortion-rights group after noting that about 95% of its political contributions went to Democrats, and with a public education group whose political arm endorsed only Democratic candidates. It also passed on a gun-rights group over concerns that banking it could look like an endorsement.

Industry Reaction and Regulatory Context

The Bank Policy Institute, which represents large U.S. and foreign banks, said in a statement that the industry supports “clear and consistent standards that promote access while maintaining sound risk management.” The institute added that political or religious beliefs should not affect access to banking services. TD Bank did not immediately respond to a request for comment, while BMO referred The Canadian Press to the Bank Policy Institute statement.

The OCC stopped short of announcing fines or sanctions but said it is considering additional rules to prevent political or religious discrimination. The regulator noted that while all nine banks have revised or consolidated policies to ensure fair access, none has fully acknowledged past debanking decisions or created a comprehensive program to remediate affected customers. The report also found restrictions affecting firearms, fossil fuels, private prisons, tobacco, and cryptocurrency, noting that some banks’ appetite for these businesses shifted with the political climate.

Why it matters

These findings provide regulatory backing to President Trump’s long-standing grievances regarding alleged political “debanking,” a claim banks have denied. The report underscores the tension between banks' risk management practices and the government's directive to prevent discrimination based on political or religious beliefs. As regulators examine whether anti-money-laundering compliance efforts contributed to debanking, the potential for new rules could significantly alter how major financial institutions assess customer relationships.

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Sources

• cnbc.com: Trump debanking push gets backing from Treasury report on major banks
• bnnbloomberg.ca: Canadian lenders named in U.S. banking discrimination report

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.