U.S. Justice Department Subpoenas JPMorgan Chase, Bank of America, Wells Fargo Over Debanking Probe

The U.S. Justice Department subpoenaed major banks including JPMorgan Chase and Bank of America as part of an investigation into whether they engaged in politically motivated account closures known as "debanking."

“Other banks under investigation include Wells Fargo (NYSE:WFC)”

Benzinga

The inquiry, issued by the U.S. Attorney's Office in Washington, D.C. under Jeanine Pirro's leadership, sought lists of "debanked" individuals and detailed explanations for account closures.

Benzinga

CNN reported that acting Attorney General Todd Blanche backed off plans for a nearly $1.8 billion fund tied to an agreement under which President Donald Trump withdrew a lawsuit against the IRS over a 2019 leak of his tax records.

CNN also said as many as 10 banks, including Bank of America, Wells Fargo and JPMorgan Chase, are subject to an ongoing probe since last year focused on debanking of Trump supporters and conservatives.

The subpoenas were described as the latest indicator of the administration’s interest in punishing banks for closing accounts, including those belonging to the president and the Trump Organization.

CNN quoted Jeanine Pirro saying, "Bringing justice to those who have been previously debanked has absolutely nothing to do with anything else," in response to claims the probe could be used to support an "anti-weaponization fund."

In the same CNN account, Pirro said, "The American people deserve financial institutions that won’t cancel them for their political or religious views."

CNN

The CNN report said some of the president’s allies suggested settlements from the debanking probe could be used to compensate Trump supporters whom the president claims were victims of weaponization.

CNN also reported that the idea was discussed as a funding mechanism, even as Pirro told CNN her investigation has nothing to do with the fund.

Separately, Devdiscourse said the subpoenas dating back to last year were issued by the U.S. Attorney's Office in Washington, D.C., and asked banks to provide lists of affected customers and explanations for closures.

Benzinga reported that the OCC and the U.S. Attorney's Office are jointly investigating whether banks may have broken laws, potentially including the 1989 Financial Institutions Reform, Recovery and Enforcement Act.

“US Justice Department subpoenas JPMorgan, Bank of America, and Wells Fargo over alleged debanking The DOJ probe targets politically motivated account closures that have disproportionately affected the crypto industry since 2021 The US Department of Justice has issued subpoenas to JPMorgan Chase, Bank of America, Wells Fargo, and other major banks as part of a sweeping investigation into whether these institutions closed customer accounts for political reasons”

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Benzinga also said Trump’s $5 Billion Suit Looms Large, describing a lawsuit filed by Trump in January seeking $5 billion in civil damages for alleged politically motivated account closures.

CNN said the probe is focused on whether banks discriminated against conservatives and industries disfavored by the Biden administration, including people involved in the Jan. 6 attack on the US Capitol.

CNN reported that prosecutors are examining whether the banks’ conduct violated a number of laws including the Financial Institutions Reform, Recovery, and Enforcement Act, which allows financial penalties for fraud and other violations.

CNN added that the banks previously were scrutinized by the Office of the Comptroller of the Currency, which in December issued a preliminary finding that nine major banks "made inappropriate distinctions among customers in the provision of financial services on the basis of their lawful business activities."