Federal prosecutors in Washington, D.C., have issued subpoenas to several major banks as part of an investigation into alleged “debanking” practices. The probe, led by U.S. Attorney Jeanine Pirro’s office, targets institutions including JPMorgan Chase and Bank of America.
The subpoenas demand information on how these banks handle customer account closures and denials of service. The investigation focuses on whether lenders unfairly cut off access to financial services for certain individuals or businesses.
The term “debanking” refers to banks terminating or refusing accounts without clear justification. Critics argue this practice can target politically disfavored groups, such as cryptocurrency firms or conservative organizations.
Prosecutors are examining internal policies and communications related to account terminations. The inquiry aims to determine if any banks violated federal laws or regulations.
The subpoenaed banks are required to produce documents and data detailing specific account reviews. This includes records of risk assessments and decisions to sever client relationships.
Financial institutions have faced growing scrutiny over their role in determining who can access the banking system. Lawmakers and regulators have raised concerns about potential discrimination in lending and account services.
The investigation marks a significant escalation in federal oversight of banking practices. It signals that prosecutors are closely monitoring how banks manage customer relationships.
Both JPMorgan and Bank of America have previously stated they follow regulatory guidelines when closing accounts. They have not yet commented on the subpoenas.
