US bank regulator faults several large lenders over debanking practices
JPM•The OCC found that all nine of the largest national banks had policies restricting some clients’ access to financial services based on subjective criteria rather than financial risk, but announced no fines or sanctions. JPMorgan filed a motion to dismiss Donald Trump’s $5 billion debanking lawsuit.
1. OCC review findings
The Office of the Comptroller of the Currency said its review of nine of the country’s largest banks found policies restricting some clients’ access to services on subjective grounds. The banks collectively hold a majority of US commercial banking assets. The regulator said it did not indicate sanctions or punishments were forthcoming, though it may consider policy changes.
2. JPMorgan lawsuit
JPMorgan Chase filed a motion on Tuesday to dismiss Donald Trump’s $5 billion lawsuit, which alleges the bank closed several of his accounts for political reasons. JPMorgan has denied closing accounts on political or religious grounds. A spokesperson said the bank prohibits such discrimination and that years of regulatory scrutiny contributed to caution across the industry.
3. Industry debate
The OCC said banks generally lacked clear, measurable standards and objective, risk-based criteria for assessing reputational risks. Banks have said decisions to close accounts or deny services reflect legal, financial or reputational risks, and have called for clearer rules. Trump has also accused Bank of America of debanking him in early 2025.
