Trump shoots Bank of America, revives discrimination claims

President Donald Trump on Thursday accused the CEOs of America’s two largest banks of refusing to serve conservatives, reviving a 2024 campaign argument that both companies deny.

Speaking by video at a town hall at the World Economic Forum in Davos, Trump attacked Bank of America CEO Brian Moynihan and JPMorgan Chase CEO Jamie Dimon in a Q&A session.

“I hope you start opening your bank to conservatives, because many conservatives complain that banks don’t allow them to do business within the bank, and that includes a bank called Bank of America,” Trump said.

“You and Jamie and everyone, I hope you open your banks to conservatives, because what you’re doing is wrong,” Trump said.

Moynihan, who was among a few leaders selected to ask the president questions during the question-and-answer session, did not immediately respond to the accusation.

Both banks deny having refused to serve the conservatives.

“We serve more than 70 million customers, welcome conservatives, and have no political litmus test,” a Bank of America official said in an email.

“We have never and will never close an account for political reasons, period,” a JPMorgan spokeswoman said in a statement. “We follow the law and the guidance of our regulators and have long said there are problems with the current framework that Washington must address.”

In the wake of the 2008 financial crisis, caused in part by shoddy lending standards at big banks, U.S. regulators increased pressure on lenders to purge customers in sectors considered to be at higher risk. risk of money laundering or fraud. This meant that payday lenders, pawnbrokers, gun dealers, and those involved in pornography had their accounts revoked, often without notice or explanation as to why.

As recently as October, Trump pointed the finger at Bank of America, reiterating his claims that it discriminates against conservatives.

The charges may stem from allegations made by state attorneys general last year. In April, Kansas Attorney General Kris Kobach sent a letter to Moynihan, accusing the bank of canceling the accounts of “several religious groups with mainstream views over the past three years.”

In a May letter responding to Kobach, Bank of America said accounts were unbanked for reasons including a change in the account’s stated purpose, the level or type of activity expected on the account, or the inability to verify certain documents required by law. .

One account highlighted by Kobach was unbanked because it was performing debt collection services, which was inconsistent with the division of Bank of America that managed the account, according to the bank’s response.

“We wish to provide clarity on a very simple matter: religious or political beliefs are never a factor in our customers’ account decisions,” the bank said in the letter. “Bank of America provides banking services to nonprofit organizations affiliated with faith-based communities throughout the United States. We maintain banking and investment relationships with approximately 120,000 faith-based customers in the United States.”

Influential people in Trump’s orbit continued to claim that banks discriminated on the basis of religion or politics.

In November, Marc Andreessen, co-founder of the venture capital firm that bears his name, told podcaster Joe Rogan that dozens of startup founders had been unbanked in recent years. Andreesen said he advises Trump on technology issues.

Bank of America shares rose more than 1% on Thursday, with shares of JPMorgan also higher.

The banking industry is seen as one of the biggest beneficiaries of Trump’s election, largely because he is expected to kill Biden-era regulatory efforts aimed at forcing banks to holding tens of billions of dollars in additional capital to avoid losses, causing annual stress. the tests are less opaque and abandon efforts to cap credit card and overdraft limits.