ByREUTERS

JUNE 15, 2026 13:54

Updated: JUNE 15, 2026 13:58

Major US financial institutions are preparing for added public examination about potential improper account terminations, as a leading regulator finishes an inquiry expected to identify banks and trigger penalties, according to multiple individuals familiar with the situation.

The Office of the Comptroller of the Currency plans to release in the near future the results of a supervisory examination into whether institutions such as JPMorgan and Bank of America terminated or refused services based on religious or political reasons, a practice often called debanking. It has also looked into whether lenders withheld services from valid conservative-linked areas including fossil-fuel firms, firearm manufacturers and cryptocurrency entities, the individuals noted.

Debanking typically describes when a financial entity abruptly ends or limits services to people or companies. After Republican President Donald Trump's directive last year, officials have targeted what Trump described as politically driven debanking encouraged by Democrats, causing issues for lenders who reject the assertions and maintain they followed standard risk procedures.

Republicans have increased efforts over several years to urge Wall Street banks to abandon what they call progressive policies viewed as biased, and Trump claims he faced account closures due to such political motives.

This mounting pressure has prompted some banks to reconsider established approaches to lending and account services, based on one individual and public bank statements.

The US Attorney's Office in Washington is examining lenders concerning debanking, according to two individuals. The Wall Street Journal initially reported on that examination last week.

Regulators Examine Debanking Reports

In December, the OCC issued an initial report noting that nine large banks from 2020 to 2023 maintained policies limiting services to certain industries and groups or imposing strict risk-management checks, frequently to sidestep reputational concerns tied to serving them. The agency indicated it was assessing those policies along with roughly 100,000 associated complaints.

Since that time, it has carried out several rounds of questions, with some lenders still receiving inquiries in recent weeks, four individuals stated. The regulator's questions centered on banks' procedures for granting and withdrawing services and proved highly specific, they added.

In its complete review, the OCC is anticipated to point out particular banks and instances, with expectations that the regulator will advance some matters to formal measures, two individuals said. Those steps might involve a confidential supervisory notice requiring banks to adjust their policies, or even public enforcement proceedings likely resolved through fines.

The OCC has indicated it is also reviewing Citigroup, Wells Fargo, Capital One, US Bank, PNC, TD Bank and BMO Bank. Representatives for the nine banks declined to comment.

Lenders state they terminate accounts for multiple reasons, such as suspicious activity, documentation issues, or because the account deviates from its intended use, but emphasize that political affiliations play no role.

The sources declined identification due to the sensitive nature of the topic. An OCC spokesperson declined to comment.

In remarks to lawmakers this month, Comptroller Jonathan Gould noted the agency was probing debanking and considering a possible legal basis for responsibility. "We are well advanced in that process," he stated.

A White House spokesperson did not respond to a request for comment.

Trump Taking Legal Action Against Lenders Over Debanking

Trump in January 2025 charged JPMorgan and BofA with discriminating against conservatives, and he along with related businesses are pursuing lawsuits against JPMorgan and Capital One regarding account closures. The banks have rejected the claims.

Another matter drawing Republican attention involved Indigenous Advance Ministries, a Memphis-based Christian organization active in Uganda. In 2023, it accused BofA of closing its accounts due to religious reasons. Facing review from Republican state attorneys general on that issue, BofA responded that Indigenous Advance engaged in debt collection and that the bank avoids that sector or small firms operating abroad.

The charity did not respond to a request for comment.

Sam Brownback, a Republican heading the National Committee for Religious Freedom, has claimed that in 2022 JPMorgan closed an account connected to him on religious grounds. JPMorgan stated it was terminated due to insufficient information.

Cryptocurrency firms, which contributed substantially to Trump's election effort, have likewise reported that banks avoided their sector.

Some lenders are adjusting their approaches. JPMorgan has lifted limits on banking various sectors, including civilian rifles, per a letter the bank sent to firearm group NSSF in January this year. The letter, referencing Trump's executive order, has not been reported previously.

Citi last year also eliminated a policy that restricted services to retail clients selling firearms.

Legal Basis Remains Unclear

The sources indicated uncertainty over the grounds regulators might use for potential enforcement steps, since many groups flagged by the OCC would lack protection under fair lending statutes.

The US Attorney's Office in Washington is investigating whether banks breached the Financial Institutions Reform, Recovery and Enforcement Act of 1989, a statute commonly applied in bank fraud cases, one source said. Reuters could not confirm if the OCC is pursuing a comparable approach.

Stephen Gannon, a partner at Davis Wright Tremaine, said the OCC might contend that lenders violated safety and soundness standards by penalizing clients for legal conduct and by overstating the risk that certain client activities could damage banks through reputational harm.

That risk, which Trump's regulators ceased monitoring last year, "has been consistently criticized as vague," said Gannon.