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Report: Trump Drafts Executive Order to Punish Banks for Political Discrimination
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Matis Glenn2 MIN READ
Published Aug. 4, 2025, 9:01 PM
US News

A Monday evening report from the Wall Street Journal indicates that the Trump administration is preparing to escalate its battle against what it calls “de-banking,” the practice of closing bank accounts for political reasons. A Monday report from the Journal states that President Trump is drafting an executive order to punish financial institutions that discriminate against conservatives.
The move comes amid a growing political battle over the influence of federal regulators on the banking industry. A Saturday Fox Business report detailed how this issue, which first gained prominence under the Obama administration’s “Operation Choke Point,” has re-emerged as a central point of contention. According to sources on Wall Street, banks often feel they have little choice but to comply with the directives of federal regulators, a network that Senate Banking Committee Chairman Tim Scott (R-S.C.) has described as a “financial swamp” of unelected bureaucrats who can “weaponize” their authority against individuals and businesses they “just don’t like.”
The practice of de-banking is often linked to the concept of “reputational risk,” a vague guideline that allows regulators to flag accounts that could pose a risk to a bank’s public image. In an effort to address this, Senator Scott, along with Representative Andy Barr (R-Ky.), has introduced the Financial Integrity and Regulation Management (FIRM) Act. The legislation aims to codify the removal of the “reputational risk” standard from regulatory handbooks, a measure that has received support from Federal Reserve Chair Jerome Powell.
The issue has even touched the highest levels of the government. The Fox Business report mentioned that former First Lady Melania Trump’s longtime bank account was reportedly shut down, and her son, Barron Trump, was unable to open an account at the same institution following the events of January 6, 2021. President Trump has previously commented on the issue, noting that regulators “control the banks.”
Caught in the middle are bank leaders themselves. JPMorgan Chase CEO Jamie Dimon has stated that de-banking often stems from “bankers’ fears that the government will come after them.” Similarly, Bank of America CEO Brian Moynihan has highlighted the constant presence of “100-plus regulators” in his building, and says his bank is “told by authorities to close accounts.”
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