"Workers in industries labelled as reputationally risky, as well as a broad range of religious and ethnic groups, have been denied access to financial services. United States President Donald Trump's $5bn lawsuit against JPMorgan Chase resurfaces his accusations of debanking the act of removing a person or organisation's access to financial services. The complaint, filed in a Florida court on Thursday, alleges that the bank singled him out for political reasons and closed several of his accounts."
"JPMC does not close accounts for political or religious reasons. We do close accounts because they create legal or regulatory risk for the company. We regret having to do so, but often rules and regulatory expectations lead us to do so, the bank said in a statement. While the lawsuit was filed in his personal capacity, the concept of debanking has long been in the crosshairs of the Trump White House."
Workers in reputationally risky industries and diverse religious and ethnic groups have been denied financial services. Donald Trump filed a $5bn lawsuit alleging JPMorgan Chase closed his accounts for political reasons after the January 6, 2021 attack. JPMorgan says accounts are closed when they create legal or regulatory risk and that regulatory expectations often drive those decisions. The White House has accused major banks of denying accounts based on political bias and issued an executive order restricting such denials. A Reuters review found only 35 CFPB complaints related to political or religious reasons out of over 8,000. Critics warn that using reputational risk can make banks arbiters of morality, leading to freezing or closing accounts for social or geopolitical concerns.
Read at www.aljazeera.com
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