Overview

• President Trump’s executive order mandates an immediate probe into whether banks have discriminated against conservatives, cryptocurrency firms and gun manufacturers.
• The directive instructs the Federal Reserve, FDIC and the Office of the Comptroller of the Currency to eliminate reputational-risk language from their regulatory guidance.
• Federal regulators must audit banking policies for signs of politicized or unlawful account closures and forward findings to the Department of Justice.
• Major banks, including JPMorgan Chase, have denied closing accounts for political reasons and have begun removing reputational-risk references from their policies.
• The administration’s order shifts U.S. banking oversight toward an explicit enforcement framework that could expose institutions to civil or criminal penalties.