Cracking Down on Political Bias in Banking
According to a report from the Wall Street Journal, the Trump administration is preparing to issue a new executive order aimed at punishing banks that deny service to customers for political or religious reasons. The order is expected to authorize investigations and potentially steep fines against financial institutions that engage in so-called “debanking” of conservative individuals, religious groups, or cryptocurrency businesses.
The draft executive order, viewed by the Journal, would direct federal regulators to investigate whether any banks have violated the Equal Credit Opportunity Act, antitrust laws, or consumer financial protection statutes by dropping customers based on their beliefs or affiliations. Banks found guilty could face monetary penalties, consent decrees, or other forms of discipline.
A Pattern of Discrimination?
Although the draft order does not specifically name any banks, it appears to reference an incident involving Bank of America, which reportedly shut down accounts belonging to a Christian organization in Uganda. While the bank claimed the decision was based on the group’s international business activity, critics saw it as an example of values-based discrimination.
More broadly, conservatives and crypto entrepreneurs have long alleged they’ve been systematically denied access to banking services, especially during the Biden administration. Religious groups, gun manufacturers, and political organizations have reported account closures, delayed transactions, and denials of credit without clear explanations.
Critics argue that these practices reflect ideological bias from institutions increasingly influenced by environmental, social, and governance (ESG) priorities. The new order would challenge that trend head-on.
How Do Banks Know Who to Drop?
While banks publicly deny any political targeting, skeptics point to growing internal pressures from compliance officers and risk management teams. Financial institutions have cited “reputational risk” as a key reason for avoiding certain businesses or individuals. Under this broad label, banks can distance themselves from clients viewed as politically controversial or socially unpopular.
Trump-appointed regulators have already moved to halt such practices. The Office of the Comptroller of the Currency previously warned banks not to make decisions based solely on reputation. The new order would expand that effort by instructing agencies to roll back any internal policies that may contribute to debanking based on ideology.
What the Order Demands
The executive order is expected to include several key directives:
- Investigate financial institutions suspected of ideological discrimination
- Repeal regulatory guidance that encourages cutting off politically sensitive clients
- Review bank partnerships with the Small Business Administration (SBA)
- Refer the most serious cases to the Department of Justice
The Justice Department has already launched a task force in Virginia to investigate complaints of credit denial based on “impermissible factors.” This order would further strengthen the federal government’s role in monitoring bank behavior toward politically active customers.
Banks Respond with Caution
Major banks have been preparing for regulatory fallout. Many institutions have updated internal policies and clarified that they do not discriminate based on political affiliation. A spokesperson for Bank of America told the Journal that the bank welcomed more regulatory clarity and has submitted proposals to the administration and Congress.
Still, bank executives continue to emphasize that their decisions are based on legal, financial, and regulatory considerations—particularly with regard to anti-money-laundering laws. The cryptocurrency industry, in particular, has struggled to find stable banking partners under these guidelines.
A Warning to the Woke
For Trump and his supporters, this executive order sends a clear signal: politically motivated discrimination in the financial sector will not be tolerated. By holding banks accountable for what critics call “creepy” and ideologically driven behavior, the administration aims to protect the rights of conservative Americans and ensure equal treatment under the law.
As the order nears finalization, likely to be signed as soon as this week, banks are on alert. If finalized, the new policy could dramatically reshape the relationship between politics and finance in the United States.
NP Editor: This is not just confined to banks, our company has experienced political discrimination at the hands of Google, Facebook and Amazon – and some of it is still ongoing.
