President Donald Trump has openly criticized two of the nation's largest financial institutions, Bank of America and JPMorgan Chase, for allegedly discriminating against conservative clients. Speaking at the World Economic Forum in Davos, Trump accused the banks' CEOs, Brian Moynihan of Bank of America and Jamie Dimon of JPMorgan Chase, of refusing to serve individuals based on their political affiliations. The accusations have spurred widespread debate and concern regarding the practices of these major banks.
Marc Andreessen, a notable figure in venture capital and an advisor to President Trump on technology matters, recently claimed on Joe Rogan's podcast that numerous startup founders have been "de-banked" in recent years. This term refers to the closing of accounts or denial of banking services. These allegations may have ties to past claims by state attorneys general who have raised similar issues.
Bank of America, which serves approximately 120,000 faith-based clients across the United States, strongly denies any form of discrimination based on politics or religion. A Bank of America official stated emphatically:
"We serve more than 70 million clients, we welcome conservatives and have no political litmus test" – Bank of America official
JPMorgan Chase has also denied the accusations. A spokeswoman for the bank clarified:
"We have never and would never close an account for political reasons, full stop" – JPMorgan spokeswoman
The controversy is not new. Influential figures in Trump's circle have previously claimed that banks are selectively discriminating against individuals based on their religious or political beliefs. In response to these ongoing allegations, Bank of America reiterated its stance:
"We would like to provide clarity around a very straightforward matter: Religious beliefs or political view-based beliefs are never a factor in any decisions related to our client's accounts" – Bank of America
Both banks have outlined their criteria for de-banking accounts, which include changes in the stated purpose of the account, unexpected types or levels of account activity, or failure to verify necessary documentation. These measures align with regulatory pressures following the 2008 financial crisis when institutions were urged to monitor and potentially sever ties with clients considered at higher risk for money laundering or fraud.
President Trump has not relented in his criticisms, demanding action from these financial giants. He remarked at Davos:
"You and Jamie and everybody, I hope you're going to open your banks to conservatives, because what you're doing is wrong" – President Donald Trump
In another statement, he added:
"I hope you start opening your bank to conservatives, because many conservatives complain that the banks are not allowing them to do business within the bank, and that included a place called Bank of America" – President Donald Trump
Despite the ongoing accusations and scrutiny, Bank of America's shares saw an uptick of over 1% on Thursday, with JPMorgan Chase shares also experiencing an increase.