Overview

• The draft order directs the Federal Reserve, FDIC and OCC to probe whether banks have violated the Equal Credit Opportunity Act, antitrust provisions or consumer financial protection statutes.
• Regulators would be authorized to refer potential violations to the attorney general, who could seek monetary fines or impose consent decrees on offending institutions.
• Administration officials plan to rescind Obama-era “reputational risk” guidelines that critics say prompted banks to drop conservative groups and cryptocurrency firms.
• Major lenders, including JPMorgan Chase and Bank of America, deny closing accounts over political beliefs and say they welcome clearer regulatory standards.
• The order follows bipartisan congressional hearings and builds on an April DOJ task force in Virginia that examined allegations of unlawful account closures.