Overview
- The executive order bars financial institutions from restricting services based on political views, religious beliefs or lawful business activities and authorizes federal agencies to enforce the prohibition.
- It directs the Federal Reserve, FDIC and Office of the Comptroller of the Currency to remove all references to vague “reputational risk” standards from their exam manuals and guidance.
- Regulators are required to audit past and current debanking policies and can impose fines, consent decrees or refer cases to the Justice Department for unlawful discrimination.
- The Small Business Administration must now compel banks under its jurisdiction to make reasonable efforts to restore accounts for clients previously denied services due to politicized debanking.
- Treasury Secretary Scott Bessent will lead development of a long-term policy strategy to safeguard fair banking access, and major lenders have signaled support as they await detailed implementation rules.