U.S. Prosecutors Request Documents from JPMorgan, Bank of America, Wells Fargo... Investigating "Debanking" Allegations

U.S. judicial authorities have launched an investigation into suspicions of so-called "debanking"—the termination of financial transactions—by major banks. The investigation aims to determine whether customer accounts were unfairly closed for political reasons.

AP Yonhap News

The Wall Street Journal (WSJ) reported on June 10 (local time), citing sources familiar with the matter, that the U.S. Attorney’s Office in Washington, D.C. has requested related documents from leading banks such as JPMorgan Chase, Bank of America, and Wells Fargo.

Prosecutors are investigating whether these banks closed customer accounts for political purposes. In particular, they are focusing on potential violations of the Financial Institution Reform, Recovery, and Enforcement Act.

This investigation comes amid ongoing tensions between U.S. President Donald Trump and major banks. Earlier this year, President Trump filed a lawsuit seeking USD 5 billion in damages against JPMorgan Chase and its CEO Jamie Dimon.

President Trump claims that, shortly after the storming of the U.S. Capitol in January 2021, JPMorgan unfairly closed accounts related to him and his family.

Previously, in August of last year, President Trump also signed an executive order instructing the Office of the Comptroller of the Currency (OCC) to investigate banks' account closure practices. The order called for a review of whether banks closed customer accounts for political motives or illegal reasons. WSJ reported that the current investigation by prosecutors is proceeding separately from the OCC’s inquiry.

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