WASHINGTON—President Donald Trump signed an executive order on Aug. 7 to stop banks from denying people financial services because of their political or religious beliefs, a practice known as debanking.
According to a White House fact sheet, the executive order requires federal banking regulators to investigate whether banks have engaged in “politicized or unlawful debanking” and to issue penalties such as “fines or consent decrees.”
The order also directs regulators to remove terms such as “reputational risk” from their guidance—language that has allegedly been used to justify debanking.
Trump first announced his plan on Aug. 5, stating in an interview with CNBC’s “Squawk Box” that banks and regulators have been involved in alleged discrimination against conservatives, including himself….
Trump Targets Politicized Debanking in New Executive Order
