Written by Andrea Shall, House of Schroeder, and Nubur Anand
The sources said that the White House is preparing to act against banks because of the clients’ dropping for political reasons, after President Donald Trump said he believed that banks including JPMorgan and Bank of America were distinguished against him and his supporters.
An executive project, reviewed by Reuters, guides the organizers by reviewing banks for “politicized or illegal” practices. It can allow monetary penalties or other disciplinary measures against violators.
It is possible that this will be announced early this week, two sources of industry said.
The White House had no immediate comment on the reported matter.
Trump’s criticism adds to pressure on the largest lenders in America, but also explains how the personal classes and commercial interests of the president are reflected in his administration policies, which critics say conflicting interests. Trump’s sprawling commercial empire was confident, but it is still finally owned by the president.
“While other moves (such as definitions) reflect his economic evaluation, this seems to reflect his personal meat,” said Peter Richewi, a senior professor at the Freiman College of Business at the University of Toleen.
“If this leads to revenge against the so -called banks, this will lead to another issue of financial markets.”
The shares of the Bank Of America were flat and another JPMORGAN took 0.4 % after losing 0.6 % and 1 %, respectively, on Tuesday.
An executive order against banks will come after Trump said in an interview with CNBC on Tuesday that the country’s best lenders had rejected his deposits in the past. Trump said, without providing evidence, that the banks’ refusal to take his deposits indicated that the administration of former President Joe Biden had encouraged the organization to “destroy it.”
“They were discriminated to,” Trump said of the measures taken by Jpmorgan after his first term in his post. “I had hundreds of millions, and I had many accounts loaded with criticism … and told me,” I am sorry, sir, we cannot get you. You have 20 days to go out. “
“They are completely distinguished, I think, perhaps more, but they distinguish against many conservatives,” he said.
Trump said he then tried to deposit money with Bank of America and was also rejected before the money was finally divided.
“I ended up going to small banks everywhere,” he said. He said, without naming the lenders: “I used to put 10 million dollars here, 10 million dollars, I did $ 5 million, 10 million dollars, 12 million dollars,” he said.
In a statement, Jpmorgan did not address the president’s specific claims about his account.
“We do not close accounts for political reasons, and we agree with President Trump that organizational change is strongly required,” said Ji Pimurgan. “We commend the White House to address this problem and look forward to working with them to get this correctly.”
Bofa did not address Trump’s specific allegations.
The issue of “reputable risks”
During the Biden administration, the organizers were able to check bank decisions based on the risk of reputation. The reputable risks are defined as the possibility of negative propaganda to harm the bank’s business or lead to the costly litigation.
Another source familiar with the situation said that the lenders were subject to severe scrutiny and pressure to weigh the reputation risk when dealing with Trump because of his legal problems.
The source said that JPMorgan has a banking relationship with members of the Trump family dating back to years and also dates back to a number of campaigns associated with Trump.
After Trump took power, the Federal Reserve announced in June that it was directing it not to consider reputable risks when examining banks. The scale was the focus of industry complaints.
“What the White House is doing is to tell banks not to hide behind the regulations to reject loans or banking relationships,” said Mike Mayo, Wales Vargo Bank analyst. “Banks can use regular subscription standards and deny services, but do not blame the organizers or use reputation risks as a justification.”
Bofa said it welcomes the administration’s efforts to clarify policies.
“We have made detailed proposals and we will continue to work with management and congress to improve the organizational framework,” the bank said.
In January, Trump warned the CEO of JPMorgan and Bofa to deny the services to the governors. At that time, the banks denied making banking decisions on the basis of politics.
“Organizational Abuse”
The banks have argued that any complaints about “Debanking” should aim at the organizers, saying that exhausting rules and excessive banking supervisors can discourage them from engaging in certain activities.
“The heart of the problem is organizational transgression and the appreciation of supervision,” said the Banking Policy Institute, the industry group, in a statement.
The first source said that the lenders had discussions about the scenarios generated on a possible arrangement.
Banks also hope that the administration will change the anti -money laundering laws that they say are outdated and exhausting, as the source added.
(I participated in the reports of Andrea Shall and Denina Qiyako; additional reports by House of Schroeder, Nobor Anand, Tatiana Butzer and Saeed Al -Azhar; Tahrir by Nick Ziminski and Nia Williams)
