White House to target banks as Trump claims discrimination

President Donald Trump has pressed on with allegations that major U.S. banks, including JPMorgan Chase and Bank of America, have unfairly severed ties with him and his supporters on political grounds—a move he claims springs up from institutional bias within the financial sector.

Speaking to CNBC, Trump claimed that these financial giants had run out of justification when they allegedly turned away his deposits after his presidency, framing it as a targeted act of discrimination. “They told me, ‘You have 20 days to get out,’” he said, recounting his experience of being cut off despite having accounts loaded up with hundreds of millions in assets.

In response, Trump wound up dispersing his funds across a patchwork of smaller regional banks. “I was putting $10 million here, $12 million there,” he said, describing how he had to hang on to financial stability by spreading his assets among institutions that were willing to work with him.

A draft of an expected executive order reviewed by Reuters reveals that Trump is preparing to instruct regulators to investigate “politicized or unlawful debanking” practices. The move appears designed to whittle away at the influence of what he deems politically motivated banking decisions—actions that he suggests are indirectly tied to the Biden administration’s regulatory framework.

JPMorgan and BofA declined to directly address Trump’s claims. However, JPMorgan noted, “We don’t close accounts for political reasons,” while also acknowledging that regulatory reform is overdue. “We commend the White House for tackling this issue,” it added.

The issue has sprouted up against the backdrop of growing political polarization in the financial sector. During the Biden administration, regulators increasingly encouraged banks to consider reputational risk—especially when dealing with controversial figures such as Trump, according to multiple sources familiar with internal discussions.

This emphasis on public image led banks to break up with certain clients, citing the potential liabilities of doing business with them. Trump and his allies argue that these reputational filters are being misused to carry out political vendettas under the guise of risk assessment.

The White House has not yet commented on the draft order, but some analysts suggest that it could bottom out the current system of discretionary banking oversight, shifting power away from regulators who previously exercised latitude under reputational risk doctrines.

Trump's grievances also appear to be fueled by an ongoing sense of marginalization. His remarks conjure flashbacks to earlier confrontations with financial institutions and reflect an enduring belief that the regulatory state has been eating away at conservative access to economic infrastructure.

Wells Fargo banking analyst Mike Mayo remarked, “What the White House is doing is making clear that banks can no longer hide behind vague reputational concerns. If they deny services, it should be based on transparent underwriting—not ideology.”

Nevertheless, critics argue that politicizing the issue may wind up creating further regulatory confusion. Industry groups like the Bank Policy Institute assert that the real issue lies in regulatory overreach and inconsistent supervision—a dynamic that has sprung up as banks navigate complex compliance environments.

Although some of the heat may peter out if the draft order is watered down, discussions around “debanking” show no signs of stopping. Banks are preparing for potential shifts in anti-money laundering laws, which could free up institutions to operate with less red tape.

As both sides dig in, the debate surrounding politically motivated financial access seems unlikely to dry up. And while Trump gets up to preparing legal or regulatory action, the broader implications for financial neutrality and institutional trust hang in the balance.

Vocabulary Guide with C2-Level Phrasal Verbs

Phrasal Verb	Meaning	Example	Discussion Question
spring up	To appear or develop suddenly	Allegations have sprung up amid political tensions.	What kind of issues tend to spring up unexpectedly in politics?
sprout up	To begin growing or emerging rapidly	Concerns about biased banking practices have sprouted up in the media.	Where have you seen trends sprout up suddenly?
break up	To end a relationship or connection	Banks broke up with high-profile clients over reputational concerns.	What are reasons a company might break up with a client?
to bottom out	To reach the lowest point before improving	Regulatory flexibility may have bottomed out during Biden's term.	Can you think of a time when a bad situation finally bottomed out?
to peter out	To gradually fade or come to an end	Public outrage may peter out if no reforms follow.	What kind of movements or trends have you seen peter out?
to wind up	To eventually arrive at a place or situation	Trump wound up turning to small banks.	Have you ever wound up somewhere you didn’t expect?
to dry up	To stop being available	Opportunities for big-bank partnerships seemed to dry up.	What resources do people fear will dry up in the future?
to get up to	To become involved in (often questionable or surprising) activities	Trump is getting up to new regulatory moves.	What do you usually get up to on the weekend?
to run out	To exhaust a supply of something	Big banks ran out of patience for reputational risk.	What’s something you've recently run out of?
to hang on to	To keep or hold tightly	He managed to hang on to his financial foothold.	What is something important you try to hang on to?
to press on	To continue despite difficulties	Trump pressed on with his accusations.	Can you describe a time you had to press on through a challenge?
to whittle away (at)	To gradually reduce something	The executive order aims to whittle away at regulatory discretion.	What kinds of habits might whittle away at your productivity?