The White House is preparing to take action against banks for alleged political discrimination. A draft executive order could authorize penalties for “debanking” practices. Trump’s criticism adds pressure on banks, reflecting his personal grievances and business interests. JPMorgan and Bank of America shares were affected by the news.

Trump claimed JPMorgan discriminated against him by rejecting his deposits. He also mentioned Bank of America refused his funds. JPMorgan denied closing accounts for political reasons and agreed that regulatory change is necessary. Banks were under scrutiny for reputational risks when dealing with Trump during Biden’s administration.

The White House aims to address banks not denying services due to reputational risks. BofA welcomed efforts to clarify policies. Trump previously criticized banks for denying services to conservatives. Banks argue that regulatory overreach and supervisory discretion are at the heart of the issue. Discussions around debanking and potential orders are ongoing.

Read more at Yahoo Finance: White House prepares order targeting banks as Trump claims discrimination