U.S. Banks Restricted Financial Services for Political Reasons; OCC: "Evidence of Discrimination Found"

U.S. OCC Releases Report

It emerged that major U.S. banks had restricted financial transactions for businesses and individuals because they operated in politically sensitive sectors.

According to The Wall Street Journal (WSJ) and other media outlets on October 14 (local time), the U.S. Office of the Comptroller of the Currency (OCC) released a report that day after investigating restrictions on financial transactions by nine major banks, including JPMorgan Chase and Bank of America (BofA).

The cover of a report on large banks' restrictions on financial transactions, released by the U.S. Office of the Comptroller of the Currency (OCC) on the 14th (local time). OCC.

The investigation began after President Trump claimed that major banks had improperly closed accounts for political purposes through “debanking,” or the suspension of financial services. OCC Comptroller Jonathan Gould said the report “provides evidence that major U.S. banks denied financial services to customers and legitimate businesses, closed their accounts, and discriminated against them.”

The investigation found that those targeted by financial restrictions did not belong to just one political camp. WePay, a payment processor acquired by JPMorgan, closed the account of a merchant in September 2021 for selling products bearing slogans supporting President Trump.

Groups with opposing views were also denied financial services. Capital One refused to let an abortion-rights advocacy group open an account and denied it services. At the time, a bank risk officer reportedly pointed out that the group donated 95% of its political contributions to Democrats.

In addition to political groups, companies in the firearms industry, cryptocurrency sector, and private prison industry were among the main targets of restrictions. The OCC criticized banks for limiting services by applying “reputational risk” assessments and ESG (environmental, social, and governance) policies without clear standards.

The findings are expected to intensify regulatory pressure on the U.S. banking sector. President Trump has already filed a lawsuit, claiming that JPMorgan closed his accounts for political reasons after he left office following his first term as president.

The OCC said it is considering additional penalties and measures to prevent discrimination based on the investigation.

This content was produced with the assistance of AI translation services.