News
Banking Probe · Debanking · Financial Regulation · Political Risk
Federal prosecutors, led by US Attorney Jeanine Pirro's Washington, DC, office, have issued sweeping subpoenas to JPMorgan Chase, Bank of America, Wells Fargo, and other Wall Street giants, initiating a criminal probe into allegations of "debanking" customers based on political affiliations, specifically targeting account closures following the January 6, 2021 US Capitol riots.
This investigation escalates President Trump's long-standing criticism and personal lawsuits against banks like JPMorgan and Capital One for allegedly closing his and his family's accounts post-Jan. 6.
Banks deny wrongdoing, citing anti-money laundering rules and regulatory pressure, though JPMorgan admitted in court documents to shuttering Trump's accounts after Jan. 6.
Prosecutors are considering charges under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), a broad fraud statute with a 10-year statute of limitations. The legal challenge lies in proving a specific law was broken, as banks generally have wide discretion over customer relationships.
The Office of the Comptroller of the Currency (OCC) previously found evidence that nine major banks "debanked" customers in politically sensitive industries like oil, gas, and firearms, citing banks' climate and racial-equity pledges. Pirro's office launched its probe independently but is now coordinating with the OCC.
