Media reports Biden administration urged top US banks to cut financial ties with Trump

(MENAFN) The Biden administration reportedly pressured major U.S. banks to distance themselves from former President Donald Trump, according to a Tuesday report by the New York Post citing unnamed sources.

Trump recently told CNBC that JPMorgan asked him to withdraw hundreds of millions of dollars in assets, while Bank of America allegedly refused to accept the funds when he attempted to transfer them. Although Trump didn’t specify when this occurred, the Post suggested it likely happened after he left office in 2021.

The outlet claims this pressure campaign was related to Trump’s alleged involvement in the January 6 Capitol riot, which occurred as Congress was set to certify Joe Biden’s presidential victory. Trump had maintained at the time that the election was stolen by the Democrats.

A senior bank executive speaking anonymously described Trump as a “hot potato” in 2021, saying that U.S. regulators strongly discouraged doing business with him. A JPMorgan source reportedly stated that financial overseers made it clear that serving Trump or similar clients came with significant reputational risk.

The Post noted that both the U.S. Office of the Comptroller of the Currency and the Federal Reserve had increased oversight of banks under policies requiring them to consider potential reputational damage from their clients. These rules have previously been criticized for allegedly leading to discrimination against conservatives and crypto-related businesses.

Meanwhile, The Wall Street Journal reported that Trump’s team had drafted an executive order aimed at penalizing banks that engage in politically motivated “de-banking.” The order could be signed as soon as this week.

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