U.S. President Donald Trump is reportedly drafting an executive order to combat the behavior of banking institutions refusing to serve customers based on 'political stance', which could be signed as early as this week, along with fines and other penalties.
Trump plans to punish banks for 'political discrimination'.
According to the Wall Street Journal, the White House is drafting an executive order requiring financial regulators to investigate whether banks are violating the Equal Credit Opportunity Act, antitrust laws, and the Consumer Financial Protection Act.
If violations are found, regulatory authorities will be able to impose fines, consent decrees, or other forms of disciplinary action on banks. The draft also requires regulatory agencies to eliminate any policies that may lead banks to refuse customers for political reasons and instructs the Small Business Administration (SBA) to review whether banks handling its loans have similar issues.
(Note: The Equal Credit Opportunity Act requires financial institutions to determine loan approval based on the applicant's creditworthiness and not to deny credit services based on factors such as race, gender, age, or religion.)
Trump criticizes big banks for discriminating against conservatives, Republicans retaliate against Woke Capitalism.
This executive order also echoes Trump's previous public criticisms.
In January, Trump named JPMorgan and Bank of America for refusing to provide services to conservatives; however, both banks denied making customer decisions based on political stance.
This move is supported by Republicans and several red states, criticizing Wall Street for implementing 'Woke Capitalism', intentionally cutting ties with conservative businesses such as arms dealers and fossil fuel companies. This executive order is also part of the Trump administration's push to loosen financial regulations, aiming to reduce capital requirements and promote economic growth and innovation.
Currently, the White House has not officially responded, but the Wall Street Journal pointed out that this order may be signed as early as this week.
(Note: Red states support the Republican Party, while blue states support the Democratic Party.)
Trump once planned to sign an executive order supporting the cryptocurrency industry against discrimination by banks.
This is not the first time Trump has clashed with banking institutions. According to previous reports, Trump is considering an executive order to prevent banks from cutting off financial services to certain 'politically unpopular' industries, including startup tech firms and cryptocurrency companies. Overall, this indicates that Trump is highly concerned about the behavior of financial institutions, and further developments remain to be observed.
This article is authorized for reprint from: (Chain News)
Original title: (Wall Street Journal: Trump plans to issue an executive order to punish banks for refusing customers based on political stance)
Original author: Louis Lin
'(8/6) May be signed this week! Report: Trump will sign an order: Banks refusing customers due to political stance may face penalties' This article was first published in 'Crypto City'
