Treasury says largest U.S. banks let politics influence who received banking services
Quick Look
The Office of the Comptroller of the Currency found that the nine largest national banks allowed political considerations and social concerns to influence banking service decisions through vague 'reputation risk' policies lacking clear, objective standards, potentially disadvantaging customers due to their political or religious views or lawful business activities, based on a review of nearly 100,000 complaints and 420,000 pages of documents.
AI-generated summary
Why It Matters
The OCC reviewed the nine largest national banks under its supervision, examining nearly 100,000 complaints and about 420,000 pages of documents to assess whether banks' reputation risk policies were being applied fairly and objectively.
The Treasury Department's Office of the Comptroller of the Currency found some of the nation's largest banks allowed political considerations, public pressure and social concerns to influence decisions about who received banking services, according to a sweeping report released Wednesday.
The OCC said it reviewed the nine largest national banks under its supervision, examining nearly 100,000 complaints and about 420,000 pages of documents. It found that all nine had used "reputation risk" policies that lacked "clear," "objective" standards and could disadvantage customers because of their political or religious views or lawful business activities.
The findings may lend new regulatory weight to a grievance President Donald Trump has pressed since returning to office. Trump has repeatedly accused major banks of discriminating against conservatives and has said he was personally "debanked" after the Jan. 6, 2021, Capitol insurrection, claims banks have denied.
The report lands a day after the OCC and other Treasury regulators imposed more than $1.2 billion in penalties on Bank of America over separate anti-money-laundering failures. At the same time, the OCC said it is examining whether banks' efforts to comply with anti-money-laundering rules have themselves contributed to debanking.
What to Watch
AI outlook — possibilities, not facts
The OCC will issue new guidance or regulations to clarify and standardize the use of reputation risk policies across national banks.
Likely · Within months
Bank of America and other major banks will review and revise their internal reputation risk assessment frameworks to reduce subjectivity and prevent discriminatory outcomes.
Likely · Within months
Open Questions
- Which specific banks were found to have the most problematic reputation risk policies?
- What concrete examples exist of customers being denied services due to political or religious views?
- Will the OCC issue new guidance or regulations to standardize reputation risk assessments?
- How will banks respond to the findings in terms of policy changes?
