Trump also said the country’s top two lenders had previously rejected his deposits, ramping up his attack on the industry.
Trump made the comments when asked about a report by the Wall Street Journal that said he planned to punish banks that discriminated against conservatives, but did not address the order specifically.
“They did discriminate,“ Trump said of actions taken by JPMorgan after his first term in office. “I had hundreds of millions, I had many, many accounts loaded up with cash ... and they told me, ‘I’m sorry sir, we can’t have you. You have 20 days to get out.’”
Trump said, without providing evidence, that the banks’ refusal to take his deposits indicated that the administration of former President Joe Biden had encouraged regulators to “destroy Trump.”
“I ended up going to small banks all over the place,“ he said. “I was putting $10 million here, $10 million there, did $5 million, $10 million, $12 million,“ he said, without naming the lenders.
In a statement, JPMorgan did not address the president’s specific claims about his account.
BofA also did not address Trump’s specific claims.
During Biden’s administration, regulators were able to scrutinize banks’ decisions on the basis of reputational risks, a second source familiar with the matter said.
JPMorgan continues to have a banking relationship with members of the Trump family that dates back years, and it also banks a number of campaign accounts linked to Trump, the third source said. After Trump took power, the Federal Reserve announced in June it was directing its supervisors to no longer consider reputational risk when examining banks, a metric that had been a focus of industry complaints.
The order could authorize monetary penalties, consent decrees or other disciplinary measures against violators, according to the draft.
“What the White House is doing is telling the banks not to hide behind regulations to deny loans or banking relationships,“ said Wells Fargo bank analyst Mike Mayo. “Banks can use their normal underwriting standards and deny services, but not blame regulators or use reputational risk as a justification.”
“We’ve provided detailed proposals and will continue to work with the administration and Congress to improve the regulatory framework,“ the bank said.
REGULATORY OVERREACH
“The heart of the problem is regulatory overreach and supervisory discretion,“ the Bank Policy Institute, an industry group, said in a statement.
Banks are also hopeful the administration may change anti-money laundering laws that they say are outdated and burdensome, the source added. - Reuters
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