In an August 5 interview with CNBC, former US President Donald Trump claimed two of America's largest banks refused to do business with him. He stated JPMorgan Chase gave him 20 days to "move hundreds of millions of dollars in cash" to a different bank, though he didn't specify when this occurred.
Trump then said he went to Bank of America to "deposit over a billion USD," but was told they couldn't open an account for him. "Bank of America CEO Brian Moynihan said, 'We can't do this'. So, I went to another bank, then another bank. I ended up going to small banks, putting 10 million here, 10 million there," he recalled.
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Former US President Donald Trump at Turnberry, Scotland, on 28/7. Photo: AP |
Former US President Donald Trump at Turnberry, Scotland, on 28/7. Photo: AP
Trump believes these large banks "discriminated" against him, similar to how he says they treat many conservatives in the US. Some conservatives, cryptocurrency executives, and religious organizations have reported being denied service by major US financial institutions.
Banks explain they don't refuse customers for political or religious reasons, but must comply with federal laws designed to prevent financial crimes. They also face pressure from regulators regarding cryptocurrency and industries considered high-risk for money laundering or fraud.
Trump's latest statements put banks in a difficult position. The banking industry has significantly benefited from the Trump administration's efforts to roll back financial regulations enacted during the Biden administration.
On 4/8, the Wall Street Journal reported that the Trump administration was preparing an executive order threatening to penalize banks that refuse customers for political reasons. The WSJ cited a draft of the order indicating the government wants regulators to investigate whether banks are violating any laws.
In the August 5 interview, Trump referenced his businesses. However, he didn't clarify whether the banking issues related to his personal accounts or his business accounts. He suggested banks refused him due to pressure from regulators under the Biden administration.
In March, the Trump Organization sued Capital One, accusing the bank of illegally closing their accounts just months after the January 2021 US Capitol riot. Capital One denied the allegations.
JPMorgan Chase also denied targeting conservatives or Trump supporters. "We do not close accounts for political reasons. JPMorgan Chase agrees with former President Trump that changes are needed in our current regulatory system. We appreciate the White House addressing these concerns and look forward to working with them," a JPMorgan Chase spokesperson said on 5/8.
Ha Thu (via CNBC, Reuters)
