AUGUST 5, 2025
Big banks said they agree with President Donald Trump that financial regulations need an overhaul, even as their stock prices dropped Tuesday after the president confirmed plans to issue an executive order to punish those that he said discriminate against conservatives.
Trump singled out JPMorgan Chase & Co. and Bank of America Corp. when asked about a Wall Street Journal report on his planned executive order.
Trump complained that the banks allegedly acted unfairly toward him when he wanted to open accounts with them.
“I had hundreds of millions of dollars — many, many accounts loaded up with cash, and [JPMorgan] told me, ‘I’m sorry sir, we can’t have you,’” Trump told CNBC. “The banks discriminated against me very badly. They discriminate against many conservatives … [or] it’s really Trump supporters.”
Trump said he was turned down by Bank of America as well.
JPMorgan Chase’s stock dropped 1% in late afternoon trading. The stock moved up from its earlier level as the worst-performing stock among the 30 in the Dow Jones Industrial Average Bank of America shares shed 0.3%.
The KBW Nasdaq Bank Index moved down by by 0.2% and the Financial Select Sector SPDR exchange-traded fund of larger bank stocks fell 0.2%.
Bank of America Chief Executive Brian Moynihan told CNBC Tuesday that the bank will continue to work with U.S. officials to clarify bank regulations.
Moynihan didn’t comment on past conversations with Trump about the president’s account applications, but said that he aims to work to prevent the “whipsawing back and forth” by bank regulators who are faced with conflicting agendas under different administrations.
A spokesperson for JPMorgan Chase said, “We don’t close accounts for political reasons, and we agree with President Trump that regulatory change is desperately needed.”
The spokesperson said JPMorgan looks forward to working with Trump on overhauling banking regulations and praised his efforts to address shortfalls in the current regulatory system.
A Bank of America spokesperson declined to comment ahead of Moynihan’s scheduled appearance on CNBC.
A Bank Policy Institute spokesperson said, “We’re hopeful that any forthcoming executive order will … [direct] regulators to confront the flawed regulatory framework that gave rise to these concerns.”
Republicans including Sen. Tim Scott of South Carolina have also complained about banks’ alleged treatment of conservatives. Scott, who chairs the Senate Banking Committee, said during a hearing in February that “it is incredibly alarming and disheartening” to hear about banks “cutting off services to digital-asset firms, political figures and conservative-aligned businesses and individuals.”
Trump has complained about unfair treatment by banks in the past, including around their reluctance to provide services related to cryptocurrencies.
Courtesy/Source: MarketWatch
