US President Donald Trump says he believes that banks, including JPMorgan and Bank of America, discriminate against him and his supporters, as he prepares to act against banks for allegedly dropping customers for political reasons.
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See subscription optionsTrump also said the country's top two lenders had previously rejected his deposits, ramping up his attack on the industry.
"They totally discriminate against, I think, me maybe even more, but they discriminate against many conservatives," he told CNBC in an interview on Tuesday.
Trump made the comments when asked about a report by the Wall Street Journal that said he planned to punish banks that discriminated against conservatives, but did not address the order specifically.
The executive order instructs regulators to review banks for "politicised or unlawful debanking" practices, according to a draft reviewed by Reuters. It is likely to be announced on Wednesday, an industry source said.
"They did discriminate," Trump said of actions taken by JPMorgan after his first term in office.
"I had hundreds of millions, I had many, many accounts loaded up with cash ... and they told me, 'I'm sorry sir, we can't have you. You have 20 days to get out.'"
Trump's latest criticism adds pressure on America's largest lenders. The order would likely require banks to conduct sweeping reviews of their businesses to comply with regulations.
Trump said, without providing evidence, that the banks' refusal to take his deposits indicated that the administration of former President Joe Biden had encouraged regulators to "destroy Trump."
Trump said he subsequently tried to deposit funds with BofA and was also refused, and eventually split the cash.
In a statement, JPMorgan did not address the president's specific claims about his account.
"We don't close accounts for political reasons, and we agree with President Trump that regulatory change is desperately needed," JPMorgan said.
"We commend the White House for addressing this issue and look forward to working with them to get this right."
BofA also did not address Trump's specific claims.
During Biden's administration, regulators were able to scrutinise banks' decisions on the basis of reputational risks, a second source familiar with the matter said.
Lenders were under intense scrutiny and pressure to weigh reputational risks when dealing with Trump because of his legal woes, a third source said.
JPMorgan continues to have a banking relationship with members of the Trump family that dates back years, and it also banks a number of campaign accounts linked to Trump, the third source said.
After Trump took power, the Federal Reserve announced in June it was directing its supervisors to no longer consider reputational risk when examining banks, a metric that had been a focus of industry complaints.
The Wall Street Journal reported on Monday the expected executive order would instruct regulators to investigate whether any financial institutions breach the Equal Credit Opportunity Act, antitrust laws or consumer financial protection laws by dropping customers for political reasons.
The order could authorise monetary penalties, consent decrees or other disciplinary measures against violators, according to the draft.
The White House had no immediate comment on the reported order.
"What the White House is doing is telling the banks not to hide behind regulations to deny loans or banking relationships," said Wells Fargo bank analyst Mike Mayo. "Banks can use their normal underwriting standards and deny services, but not blame regulators or use reputational risk as a justification."
BofA said it welcomed the administration's efforts to clarify the policies.
"We've provided detailed proposals and will continue to work with the administration and Congress to improve the regulatory framework," the bank said.
Australian Associated Press
