NEW YORK AP - President Donald Trump on Thursday signed an executive order mandating a probe into whether banks have discriminated against conservatives and certain industries like gun manufacturers and cryptocurrency companies, invoking the vast powers to go after entities that the Republican president alleges have discriminated against him and his allies.
The executive order deals with an issue known as "debanking," which is when banks close accounts of individuals or declines to go into business with certain industries. Trump has accused JPMorgan and Bank of America of debanking him and his companies in the past, something both banks have denied.
Trump ordered federal bank regulators to make sure banks do not discriminate against individuals or companies for their political or religious beliefs. He also ordered bank regulators to probe when banks may have allegedly discriminated and refer the cases to the Department of Justice.
The move could open banks to potential civil or criminal investigations, fines or punishments.
When Trump and his party discuss debanking, they typically refer to banks closing the accounts of a person or company when they no longer want to do business with them. Banks usually say they close accounts or deny loans because the person or business is deemed too risky. The banking industry has long argued that it has a constitutional right to choose whom they go into business with, if it does not violate laws like the Equal Credit Opportunity Act.