JPMorgan Cooperating with Government Inquiries Amid Scrutiny Over “Debanking” Practices

JPMorgan Chase (JPM.N) disclosed in a regulatory filing on Tuesday that it is cooperating with inquiries from government agencies and other entities concerning its internal policies and procedures, as the Trump administration intensifies its focus on alleged “debanking” of specific industries or clients.

The U.S. Office of the Comptroller of the Currency (OCC) issued new guidance in September designed to discourage banks from closing customer accounts based on political or religious beliefs. The move followed a directive from President Donald Trump instructing regulators to review financial institutions for potential political bias.

According to the White House, the directive was intended to address “systemic abuses by financial institutions that undermine free expression and economic opportunity.”

Jonathan Gould, head of the OCC, stated at a conference on Tuesday that OCC examiners are currently assessing whether major U.S. banks have rescinded policies that previously discouraged providing services to certain industries, including firearms. Gould remarked that some banks have already indicated they have modified their internal policies.

Bank of America (BAC.N) revealed in a regulatory filing last week that it, too, has received similar requests from regulators.

“Certain of these matters are at various stages, including reviews, investigations, and legal proceedings,” JPMorgan said in its filing.

By fLEXI tEAM