President Donald Trump is taking swift action to address the growing concerns over political and ideological discrimination in the banking sector.
The Trump administration is reportedly mulling plans to impose significant penalties on financial institutions found to be refusing services based on these factors.
According to a draft executive order obtained by The Wall Street Journal, the administration plans to direct regulators to investigate allegations that banks are discriminating against certain groups, such as political organizations and cryptocurrency firms.
The executive order, expected to be signed soon, possibly within the week, seeks to ensure that financial institutions comply with laws like the Equal Credit Opportunity Act, antitrust regulations, and consumer protection rules.
Should violations be found, institutions could face severe penalties, including fines, consent decrees, or other corrective actions.
However, sources suggest that the order may undergo modifications or delays before its final signing.
While the draft does not single out specific institutions, it references several controversial incidents, such as Bank of America’s alleged decision to shut down accounts for a Christian organization providing aid to Uganda, reportedly due to the group’s religious beliefs.
Additionally, the order highlights banks’ involvement in investigating individuals and organizations connected to the January 6, 2021, protests in Washington, D.C.
This suggests that some financial institutions may have unfairly discriminated against certain political groups or individuals.
For years, conservatives have raised alarms over the politicization of banking services.
Certain financial institutions have been accused of systematically denying access to banking based on political, religious, or ideological grounds.
In one notable example, First Lady Melania Trump revealed that she and her son Barron were denied service from a bank due to “political discrimination.”
Cryptocurrency companies have echoed these concerns, claiming systematic exclusion from the financial system, particularly under the current administration’s policies.
In response to these allegations, banks have defended their actions, stating that they are driven by concerns over legal and regulatory risks, especially related to anti-money laundering requirements.
They argue that they are merely complying with rules set for emerging sectors like cryptocurrency, which have introduced regulatory challenges.
Bank of America has expressed support for the administration’s efforts to provide clearer regulatory guidance on these matters.
A spokesperson for the bank commented:
“We’ve provided detailed proposals and will continue to work with the administration and Congress to improve the regulatory framework.”
Ahead of the anticipated executive order, banks have started consulting with Republican attorneys general and updating their policies to ensure they do not discriminate based on political affiliation.
The draft order also instructs regulators to review and possibly eliminate policies that might be causing the exclusion of certain customers.
Furthermore, it includes provisions for the Small Business Administration to investigate the banking practices of institutions supporting its loan guarantees.
During the Trump administration, regulators took steps to prevent banks from assessing “reputational risk” when making decisions about their customers.
The practice has long been criticized by conservatives.
The draft executive order extends this effort, calling for a broader review of discriminatory banking practices, with the Department of Justice (DOJ) stepping in if violations are found.
As this executive order progresses, it could mark a significant shift in how banks operate, holding them accountable for politically or ideologically motivated discrimination.
For conservatives, this represents a crucial moment in the battle against the weaponization of financial institutions and the ongoing erosion of free speech and rights in the marketplace.
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