President Trump said two American banks once refused to accept him as a customer, making his comment Tuesday as he prepares an executive order that would punish such institutions for discrimination against conservatives. Here’s what you need to know about the banking discrimination allegations:
The JPMorgan Chase rejection
Trump describes being told to move hundreds of millions:
- JPMorgan Chase told him he had 20 days to move “hundreds of millions of dollars in cash”
- Trump said he was forced to transfer funds to another bank
- President made comments in CNBC “Squawk Box” interview Tuesday
- Didn’t specify when alleged rejection happened or if personal or business accounts
The Bank of America refusal
Second major bank allegedly turned down billion-dollar deposit:
- Trump said he went to Bank of America with the JPMorgan funds
- Bank told him it couldn’t provide account to “deposit a billion dollars plus”
- Bank of America CEO Brian Moynihan said “We can’t do it” according to Trump
- President claims he was rejected despite offering massive deposits
The small bank strategy
Trump forced to spread money across multiple institutions:
- “So I went to another one, another one, another one”
- “I ended up going to small banks all over the place”
- “I was putting $10 million here, $10 million there”
- “The banks discriminated against me very badly, and I was very good to the banks”
The banks’ responses
Financial institutions deny political discrimination:
- JPMorgan Chase spokeswoman Patricia Wexler said bank doesn’t “close accounts for political reasons”
- Chase agreed “regulatory change is desperately needed”
- Bank “pleased to see the White House is addressing this issue”
- Bank of America said it doesn’t comment on Trump’s allegation but welcomes “regulatory clarity”
The Trump family pattern
Other family members report similar financial discrimination:
- Lara Trump said family had difficult time getting mortgage during 2024 legal battles
- Difficulties occurred when Trump faced at least four indictments
- Donald Trump Jr. said insurance agencies also dropped the family
- “The de-banking, the de-insurance, the de-everything. It was rough”
The executive order preparation
Trump drafting directive to investigate bank discrimination:
- Order directs bank regulators to investigate whether institutions violated laws
- Focus on Equal Credit Opportunity Act or consumer financial protection laws
- Targets barring conservatives from opening accounts
- Order expected to be signed later this week
The potential penalties
Violators could face serious consequences:
- Subject to monetary penalties according to draft order
- Consent decrees possible for violating institutions
- Other disciplinary measures available to regulators
- Wall Street Journal viewed copy of draft order
The 2023 precedent
Bank of America faced previous discrimination allegations:
- Accused of shutting down Christian organization’s accounts in 2023
- Organization operated in Uganda based on religious beliefs
- Bank said it closed accounts because it doesn’t serve small businesses outside U.S.
- Case provides precedent for current discrimination concerns
Trump’s theory
President blames Biden administration pressure:
- Believes banks rejected him and supporters due to regulatory pressure
- Says Biden administration regulators applied pressure to companies
- Financial institutions don’t want to risk angering current president
- Banks benefit from Trump’s efforts to roll back Biden-era rules
Read more:
• Trump says two banks rejected him over conservative leanings
This article is written with the assistance of generative artificial intelligence based solely on Washington Times original reporting and wire services. For more information, please read our AI policy or contact Ann Wog, Managing Editor for Digital, at awog@washingtontimes.com
The Washington Times AI Ethics Newsroom Committee can be reached at aispotlight@washingtontimes.com.
