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OCC Poised to Name Banks in Debanking Probe

A forthcoming OCC report could identify banks that regulators believe improperly closed or denied accounts for political or religious reasons.

Overview

  • The OCC has finished a detailed supervisory review and is preparing a report expected in coming weeks that may name specific large banks and recommend supervisory or enforcement steps.
  • Coverage says the probe targets nine major lenders, including JPMorgan Chase and Bank of America, and examines account denials affecting sectors such as cryptocurrency firms, fossil‑fuel companies and gun sellers.
  • The U.S. Attorney's Office in Washington and the Department of Justice have opened parallel inquiries and issued subpoenas to some banks, creating the possibility of concurrent criminal or civil investigations.
  • Banks maintain closures were based on risk management, anti‑money‑laundering checks or operational issues, and several institutions have already relaxed policies that limited services to certain industries.
  • Regulators have signaled they will stop using 'reputational risk' in bank exams, a change that could reduce informal pressure on banks to cut ties with politically sensitive clients and affect access to banking for those businesses and individuals.