Jeanine Pirro, the U.S. Attorney for the District of Columbia, is looking into whether major banks have closed customers’ accounts over politics, according to a new report.
Pirro’s office subpoenaed Bank of America, JPMorgan Chase and other top banks, seeking information on whether they engaged in debanking — a process by which banks can suddenly close accounts — for political reasons, The Wall Street Journal reported. The banks were asked to list the customers whose accounts were allegedly closed and the reasons why, people familiar with the issue told the outlet.
Debanking typically happens when there’s concern about legal or regulatory risks. The banks maintain that they do not shut down accounts for political reasons, according to the report.
The Independent has reached out to Bank of America and JPMorgan Chase for comment. The U.S. Attorney’s Office for the District of Columbia declined to comment when contacted by The Independent.
This comes just months after President Donald Trump sued JPMorgan Chase and CEO Jamie Dimon for $5 billion. The president alleged he was “debanked” for political reasons in the wake of the January 6, 2021, Capitol attack.
JPMorgan Chase has said the lawsuit has “no merit.”
“Our company does not close accounts for political or religious reasons. We do close accounts because they create legal or regulatory risk for the company. We regret having to do so, but often rules and regulatory expectations lead us to do so,” the bank said in a January statement.
The Trump Organization also sued Capitol One last year, accusing it of “unjustifiably terminating” more than 300 of its accounts in 2021. Eric Trump, the president’s son and executive vice president of the Trump Organization, said the bank’s decision was a “clear attack on free speech and free enterprise that flies in the face of the bedrock principles and freedoms that define our country.”
“Moreover, the arbitrary closure of these accounts, without justifiable cause, reflects a broader effort to silence and undermine the success of the Trump Organization and those who dare to express their political views,” he added.
At the time, Capitol One told several media outlets that it “does not close customer accounts for political reasons.”
Trump also signed an executive order in August seeking to curb “politicized or unlawful debanking” by major banks.
“Such practices are incompatible with a free society and the principle that the provision of banking services should be based on material, measurable, and justifiable risks,” he wrote.
