Overview

• Draft order instructs the FDIC, Federal Reserve and Office of the Comptroller of the Currency to investigate potential violations of the Equal Credit Opportunity Act, antitrust statutes and consumer financial protection laws.
• Banks found to have discriminated for political or ideological reasons could face monetary fines, consent decrees and referrals to the Justice Department.
• The proposal calls for removing long-standing reputational-risk guidance from bank examination manuals after the Federal Reserve moved to drop it in June.
• A Justice Department task force established in April is already examining account closures based on impermissible factors under federal law.
• Leading banks such as JPMorgan Chase and Bank of America have welcomed the push for clearer rules and pledged to cooperate with regulators.