President Trump launched a heated debate after saying that two major American banks discriminated against him. He said that Jpmorgan Chase and Bank of America refused to work with him after his presidency, arousing the concern of conservatives, crypto defenders and groups of freedom of expression.
Did the banks simply follow the rules, or is there any more? Discover.
Trump says banks have excluded her
Recently, Trump said Jpmorgan Chase and Bank of America refused it after leaving his duties. He said JPMorgan had only given him 20 days to move “hundreds of millions of dollars” and Bank of America refused to open an account when he tried to deposit more than a billion dollars.
“The banks were very badly discriminated against me, and I was very good for the banks,” said Trump, adding that “they discriminated against many conservatives”.
What is the gambling and why is it important now?
Debanking refers to the closure or refusal of bank accounts according to political opinions, affiliations of a person or even the industry in which they work. This was an increasing concern among the conservatives, cryptographic companies and religious groups, many of which say they have been excluded from major financial institutions without appropriate explanation.
Banks discuss the opposite. They claim that these actions are motivated by the compliance requirements intended to prevent fraud, money laundering and reputation damage. These risks have become greater after scandals such as the collapse of the FTX.
The CEO of Bank of America blames complex rules
Bank of America’s CEO Brian Moynihan, tackled Trump’s remarks in a recent interview with CNBC. Moynihan noted that this is not a policy, but that these are regulations. “We don’t do politics, we just try to follow the rules,” he said.
He also said Trump “was after the right thing.” He explained that rules like BSA (Bank Secrecy Act), AML (money-breeding), KYC (know your client) and reputation risk policies have become so complex that they sometimes force banks to make decisions that are questioned later.
Large banks require clearer rules, back reform efforts
Moynihan added that the banking sector, including Bank of America, works with the treasure and current administration to repair and simplify the system. “I am delighted to make it repaired,” he said. He also clearly indicated that Bank of America serves everyone and not just certain groups.
A JPMorgan spokesperson also said that he was not closing the accounts for political reasons and agrees with Trump that a regulatory reform was necessary. The bank congratulated the White House to tackle the problem and said it was ready to help repair it.
Trump decree
In particular, Trump also works on an executive decree which could penalize banks to discriminate cryptographic companies. Investors are enthusiastic about moving and see this as a possible end of “Crypto Debanking”, which has long limited access to banks for cryptographic startups.
The two parties calling for modification, the pressure rises to repair a system which, according to many, is broken.
