Large US banks say they don’t have a ‘political litmus test’ for clients, after President Trump suggested major financial institutions are not letting conservatives do business with them, Bank Of America was found on Thursday on defense.
“I wish conservatives would start opening banks because a lot of conservatives are complaining that banks don’t allow them to do business inside their banks. Davos, Switzerland, Bank of America (BAC) and JPMorgan Chase (JPM).
The comments were directed at Bank of America CEO Brian Moynihan. Both banks said in statements Thursday that they do not consider politics when closing accounts. Jpmorgan called for a new approach to fighting financial crime from Washington, while Bank of America noted “extensive” regulations governing such decisions.
“We have never closed any accounts for political reasons or outright suspension,” JPMorgan’s statement read. “We have long said there are problems with the current framework in which Washington must respond, in accordance with the law and guidance from regulators. We welcome the opportunity to work with the new administration and Congress on ways to remove regulatory ambiguities.”
JPMorgan CEO Jamie Dimon discussed the subject on the company’s podcast earlier this week.
“We serve more than 70 million clients and welcome conservatives,” Bank of America’s statement read. “We are subject to extensive government rules and regulations that may result in a decision to terminate a client relationship. We do not offer political explanations and are not subject to political litmus tests.”
The major financial firm’s KBW Nasdaq Bank Index (BKX) ended the day in the green, but below levels seen in early afternoon trading. Shares of both JPMorgan and Bank of America rose more than 1% today.
