Overview

• The White House is finalizing an executive order that could be signed within days to penalize banks accused of politically motivated account closures.
• The draft directs federal banking regulators to investigate potential breaches of the Equal Credit Opportunity Act, antitrust provisions and consumer protection laws.
• Banks found in violation could face monetary fines, consent decrees and referrals to the Justice Department’s debanking task force.
• The order also mandates that the Small Business Administration review bank practices tied to SBA loan guarantees for ideological discrimination.
• JPMorgan Chase and Bank of America have denied political bias, welcomed regulatory clarity and joined discussions on reforming so-called reputational risk guidelines.