Regulatory Changes Impacting Banks - America's largest banks are experiencing regulatory relief following President Trump's executive order aimed at reducing de-banking practices, which has positively influenced the U.S. financial systems [1] - The dissolution of the reputational risk standard has allowed banks to adopt more balanced and apolitical internal policies, enhancing their operational freedom [1][12] Changes in Account Management - Banks anticipate a decrease in account closures, and Suspicious Activity Reports (SARs) now require less paperwork, enabling financial institutions to concentrate on high-risk activities [2] - Bank of America has introduced new policies to improve transparency regarding account closures, stating that they have never revoked accounts for political reasons, although previous regulatory pressures existed [4][5] Regulatory Environment and Political Influence - The Trump administration's actions have alleviated concerns regarding regulatory pressures that previously encouraged political de-banking practices [11][15] - The Financial Crimes Enforcement Network (FinCEN) has updated SARs reporting requirements, which may further ease the regulatory burden on banks [9] Legislative Efforts - Senate Banking Chairman Tim Scott has criticized the role of regulators in the banking industry, describing it as a "financial swamp" that influences access to banking services [8] - The Financial Integrity and Regulation Management (FIRM) Act, proposed by Tim Scott, aims to ensure that regulatory power is checked and to codify prohibitions against political de-banking practices [16][19] Historical Context - The expansive regulatory power that existed prior to the Trump administration was shaped during Operation Choke Point, which allowed regulators to target bank accounts based on vague reputational risk criteria [12]