Bank of America and JPMorgan are planning to lobby the White House and Congress to defend themselves against accusations that they have shut down accounts of conservative customers on political grounds. The banks claim that they need clearer guidance from the government on how to police money laundering and provide services to a range of industries.
The issue of “debanking” has been a long-standing concern for Republicans, who have accused Wall Street banks of “woke capitalism” and denying services to gunmakers, fossil-fuel companies, and other industries perceived to be aligned with the political right.
Bank of America has denied that it makes banking decisions based on politics, stating that it serves over 70 million clients and welcomes conservatives. JPMorgan has also denied any political bias, citing the need for clearer regulation on assessing customers.
Industry sources suggest that banks will push the government to clarify anti-money laundering laws, establish a clear federal standard on fair access to financial services, and streamline bank supervisory practices on who can be banked. They are also seeking clarification on the new anti-money laundering rules introduced in 2020.
Banks have been criticized for shutting down accounts without providing customers with a clear reason, leading to allegations of political bias. Lenders are prohibited from informing customers why they have been debanked, which has fueled accusations of political bias.
JPMorgan CEO Jamie Dimon has lamented that there is a need for clearer lines on what banks are and are not required to do, citing the bank’s long-standing complaints about the lack of clarity in banking regulations. He stated that the bank has not debanked anyone due to political or religious reasons.
The Trump administration is expected to prioritize trimming regulations, which could lead to changes in rules and oversight that would enable banks to have clearer standards around debanking. Bank lobby groups will also participate in the effort to push for regulatory clarity and better guidance on the issue.