JPMorgan Discloses Government Probe Into Debanking Practices

US regulators are examining whether JPMorgan Chase has denied customers fair access to banking, as pressure grows over debanking decisions that were made against conservative figures, according to reporting from Financial Times and the company’s 10-Q filing.

In its quarterly filing, the bank noted it was “responding to requests from government authorities and other external parties regarding, among other things, the firm’s policies and processes and the provision of services to customers and potential customers”.

JPMorgan linked the scrutiny to an August executive order from Donald Trump directing regulators to review possible “politicised or unlawful debanking”. The bank said related inquiries include “reviews, investigations and legal proceedings,” without identifying the agencies involved.

Bank of America has similarly reported responding to government demands about “fair access to banking.” Industry lobbyists argue that regulatory rules around politically exposed persons and “reputation risk” have pushed banks to deny certain customers.

Recall, just yesterday, we noted that a top bank watchdog was making sure big banks have finally ditched debanking policies. You remember those, right? We sure do. It happened around the same time Google, Paypal and Amazon all banned us due to our (correct) take on the origins of Covid-19 and because they didn’t like our (correct) take on the BLM movement.

For those that missed it, a slew of banks under the Biden administration outright cancelled people’s accounts and didn’t allow them access to a bank account based on the industry they worked in, or many times their political views (surprise, none of them were Democrats).

Jonathan Gould, head of the Office of the Comptroller of the Currency, or OCC, told a conference that supervisors are double-checking banks really did stop blacklisting sectors like firearms from banks, according to Reuters.

This oversight follows a June executive order from President Donald Trump directing banks to avoid denying services based on industry type or political considerations.

Reuters writes that supervisors are now ensuring that the largest banks are in compliance with the updated approach.