WSJ Opinion: Potomac Watch Donald Trump's Order Targeting 'Debanking'
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Aug 8, 2025 Donald Trump signs an executive order aimed at combating the growing issue of 'debanking,' which affects individuals and businesses labeled as having a 'reputational risk.' The discussion dives into the challenges faced by conservative groups in obtaining banking services and examines whether regulatory changes are sufficient. The need for new legislation to safeguard fair lending practices is considered, alongside critiques of regulatory overreach. Finally, the podcast highlights the declining number of banks and the importance of fostering competition in the banking sector.
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Trump's Debanking Example
- Donald Trump recounts banks telling him to leave and move funds to smaller banks.
- He said one bank told him, 'We can't have you. You have 20 days to get out.'
Regulators Grade Banks On Reputational Risk
- Alicia Finley says regulators grade banks for 'reputational risk' and label industries risky.
- That grading forces banks to stop services to those customers to avoid bad exam results.
SARs Enabled Investigations Without Warrants
- Alicia Finley explains the Bank Secrecy Act forces banks to file SARs to FinCEN.
- She says officials pressured banks to flag Jan. 6 participants so they could be investigated without warrants.