White House Draft Order Targets Banks for Political Debanking Practices

The WHITE House is preparing an executive order to investigate and penalize banks accused of denying services based on political views. Financial regulators would examine institutions for "politicized or unlawful debanking," with potential fines or penalties for violations. Two industry sources suggest the order could be unveiled this week.

Former President Trump's public grievances against major lenders appear to be influencing the policy. His recent claim that Bank of America and JPMorgan refused his business—made without evidence—coincides with the proposed order. Bank stocks showed muted reactions, with JPMorgan dipping 0.4% after Tuesday's 1% decline.

The MOVE raises concerns about market stability. "If this becomes retribution against specific banks, it could spark fresh turmoil," warns Tulane University's Peter Ricchiuti. The administration's stance blurs the line between policy and personal vendettas, particularly given Trump's continued ownership of business interests held in trust.