According to a Bloomberg report, the President’s executive order will direct federal banking regulators to remove reputational risk standards from their guidance and training materials.
President Donald Trump is reportedly planning to sign an executive order on Thursday to prevent banks and regulators from denying services to customers over political and ideological differences.
President Trump’s executive order will direct federal banking regulators to remove reputational risk standards from their guidance and training materials, according to a Bloomberg report.
The order will also direct the regulators to identify banks and financial institutions that engaged in “debanking” practices in the past, the report said, citing an unnamed White House official.
Regulators will have to impose fines or enforce remedial measures they deem necessary against financial institutions found to have engaged in these practices. In addition to this, regulators will be tasked with reviewing complaints and referring instances of customers having been denied services due to religion to the Department of Justice (DOJ), the report added.
Banks and financial institutions that fall under the purview of the Small Business Administration will be required to make efforts to reinstate services that were denied unlawfully, according to the report. This comes days after President Donald Trump accused some of the biggest banks in the U.S., namely JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC), of denying him services and discriminating against him.
JPMorgan’s shares traded 0.42% lower at the time of writing, while Bank of America’s shares were down 0.65%. Retail sentiment on Stocktwits around the JPM stock was in the ‘bearish’ territory, while users felt ‘bullish’ about the BAC stock.
Meanwhile, U.S. equities gained in Thursday morning’s trading session as President Trump’s reciprocal tariffs deadline kicked in. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.21%, while the Invesco QQQ Trust (QQQ) gained 0.73%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘neutral’ territory.
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