WASHINGTON — The U.S. Department of Justice has issued subpoenas to several of the nation’s largest banks, seeking information related to allegations that customers were improperly denied banking services or had accounts closed because of their political views, according to a new report.
The Wall Street Journal reported that the subpoenas were sent by the U.S. Attorney’s Office in Washington, D.C., led by Jeanine Pirro, and were delivered to banks including JPMorgan Chase and Bank of America. The Wall Street Journal, citing people familiar with the matter, said Wells Fargo was also among the institutions receiving requests for information.
The subpoenas mark an escalation of the Trump administration’s efforts to investigate claims of so-called “debanking,” or the alleged denial of banking services to conservatives and businesses operating in politically controversial industries, according to the Journal.
Move Follows Executive Order
President Donald Trump has previously alleged that he was denied banking services by JPMorgan Chase and Bank of America after leaving office following the Jan. 6, 2021, Capitol riot. In August, Trump signed an executive order directing federal banking regulators to investigate what the administration described as “politicized or unlawful debanking” and to pursue enforcement actions where appropriate, the Journal reported.
According to the newspaper, the Justice Department’s subpoenas seek information on customers whose accounts were closed, including the reasons banks cited for terminating those relationships.
The Banks Respond
Banks have maintained that account closures are not based on political or religious beliefs. Financial institutions have said decisions to limit or end banking relationships are driven by legal requirements related to anti-money laundering compliance, fraud prevention and risk management, as well as broader regulatory expectations.
The Wall Street Journal reported that while the investigation had largely been overseen by the Office of the Comptroller of the Currency, the Justice Department launched its own review. The newspaper cited sources saying the OCC had not formally referred matters to federal prosecutors, although the two agencies are coordinating their efforts.
The OCC released a preliminary report in December that found early evidence suggesting some industries may have faced challenges obtaining banking services from the nation’s nine largest banks, according to the Journal. The agency reportedly identified sectors including oil and gas, coal, firearms manufacturing and adult entertainment as among those affected.
The report also cited banks’ public commitments related to environmental and social initiatives, including climate-change and racial-equity programs.
Nature of Investigation
According to the Journal, investigators are examining whether banks’ actions could violate the Financial Institutions Reform, Recovery and Enforcement Act of 1989, a law historically used in cases involving banking misconduct and fraud. The statute was widely employed following the 2008 financial crisis in cases involving mortgage-backed securities.
The newspaper noted that regulators and prosecutors face legal hurdles in determining whether any laws were violated, given that banks generally have broad discretion in deciding which customers and industries they serve, provided they do not engage in unlawful discrimination.
The Justice Department’s investigation comes as Trump and members of his family pursue separate legal actions against financial institutions.
The banks have denied any wrongdoing and have rejected claims that account closures were politically motivated, according to the Journal.
