JPMorgan discloses US probe over alleged conservative ‘debanking' scandal

Core Viewpoint - The US government is investigating JPMorgan Chase over allegations of "debanking" customers with conservative political ties, following claims made by former President Trump [1][10]. Group 1: Investigation and Responses - JPMorgan Chase is responding to requests from government authorities regarding its policies and processes related to customer service [1]. - The investigation is linked to Trump's executive order from August, which called for scrutiny of banking policies that may lead to politicized debanking [1][9]. - Bank of America has also indicated it is responding to demands for "fair access to banking" in light of the executive order [4]. Group 2: Allegations and Claims - Trump accused JPMorgan and Bank of America of rejecting over $1 million of his deposits for political reasons after leaving office in 2021 [2]. - Melania Trump claimed her banking account was closed shortly after the January 6 riots, suggesting a pattern of debanking against conservatives [3]. - Former Republican Kansas Governor Sam Brownback alleged that JPMorgan closed his account due to his conservative views, a claim the bank denied [8]. Group 3: Regulatory Context - Trump's executive order emphasizes the concept of "reputation risk," which may lead banks to reject clients based on political affiliations [9]. - The order highlights the negative impacts of debanking on individuals, including financial harm and damage to reputations [9]. - Banks that engage in debanking practices may face fines or penalties from regulators as a result of the investigation [9].