Close Menu
Truth Republican
  • Home
  • News
  • Politics
  • Business
  • Guns & Gear
  • Healthy Tips
  • Prepping & Survival
  • Videos
Facebook X (Twitter) Instagram
Truth Republican
  • Home
  • News
  • Politics
  • Business
  • Guns & Gear
  • Healthy Tips
  • Prepping & Survival
  • Videos
Newsletter
Truth Republican
You are at:Home»Business»The ‘financial swamp’ of banking regulators who ‘decide’ which Americans get their bank accounts shut down
Business

The ‘financial swamp’ of banking regulators who ‘decide’ which Americans get their bank accounts shut down

Buddy DoyleBy Buddy DoyleAugust 2, 2025No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp
The ‘financial swamp’ of banking regulators who ‘decide’ which Americans get their bank accounts shut down
Share
Facebook Twitter LinkedIn Pinterest Email

Senate Banking Committee Chairman Tim Scott, R-S.C., outlined why banking regulators are the root of the issue when it comes to shutting down American bank accounts, also known as de-banking, because regulators “just don’t like them.”

Banking regulators operate under an “alphabet soup” of federal agencies, and sources on Wall Street told Fox News Digital that when a regulator speaks, whether couched as a rule, guidance, or even a simple conversation, banks have little choice but to listen.

“This is a financial swamp in D.C. and beyond that decides who gets an account, who gets a loan, who has access,” Senate Banking Chairman Tim Scott told Fox News Digital. “These are folks who have not been elected by the citizens of our country.” 

RED STATE OFFICIAL RECOUNTS PERSONAL EXPERIENCE OF BEING ‘DEBANKED’ AND WHY IT ‘HAS TO BE STOPPED’

“These are the bureaucrats who are using their power to weaponize consistently against Republicans, consistently against conservatives, and consistently against the growth industries of our country, like the crypto industry, because they just don’t like them,” Scott added.

The high level of power that regulators hold was first crafted under Operation Choke Point by former President Barack Obama’s Department of Justice. A key component of the operation allowed regulators to flag bank accounts that posed a “reputational risk” to the banking institution. 

Additionally, language in the Office of the Comptroller of the Currency (OCC) handbook alluded to treating “negative public opinion” as heavily as a serious financial risk. 

The vague guidelines prompted the closure of accounts across America, but as the Senate Banking Chairman noted, many of these accounts were allegedly closed for political reasons or whether the regulators didn’t like the owners or industry behind the accounts. 

JPMORGAN CEO REVEALS WHAT’S KEEPING THE AMERICAN ECONOMY STRONG DESPITE GLOBAL CHALLENGES

One significant case includes First Lady Melania Trump, who said in her memoir that she received notice her longtime bank account was being shut down and that her son, Barron Trump, was not able to open an account at the same banking institution following the events of January 6, 2021.

While taking questions from reporters at the Oval Office in June, President Donald Trump himself noted that “the regulators control the banks” and that when an administration tells regulators to “go and make life impossible for big banks and little banks” that the regulators “really control it.”

Trump and Powell on a tour of the Fed building

Under the Trump administration, the language has since been redacted, and Sen. Tim Scott, R-S.C., along with House of Representatives member Andy Barr, R-Ky., introduced the Financial Integrity and Regulation Management (FIRM) Act to codify the removal of the vague language to prevent a future administration from seamlessly reversing the reputation-based account closures.

“Woke regulators have targeted businesses based on their politics for years,” Rep. Andy Barr told Fox News Digital. “From crypto firms to firearms manufacturers, coal and natural gas businesses.”

Dropping the reputational risk policy even garnered the support of Federal Reserve Chairman Jerome Powell, who said during a House Financial Services Committee hearing in June that “it’s the right thing to do.”

DOGE DEVELOPS INNOVATIVE AI TOOL TO ELIMINATE UNNECESSARY FEDERAL REGULATIONS

As the legislation moves through Congress, Wall Street hasn’t been shy about speaking out against the leverage and control that federal regulators have over the industry. 

JPMorgan Chase CEO Jamie Dimon

A spokesperson from JPMorgan Chase confirmed to Fox News Digital that the firm does not close accounts on the basis of political or religious affiliation, and has repeatedly called for a better and more transparent regulatory framework that would help prevent unnecessary account closures.

Jamie Dimon told the Dallas Morning News Editorial that de-banking “often arises from bankers’ fears that the government will come after them” if they end up doing business with a bad actor.

Bank of America CEO Brian Moynihan told the Economic Club in D.C. there are “100-plus regulators in our building every day” and that America’s second-largest bank is “told by authorities to close accounts.”

SEN RAND PAUL: THERE ARE $186 BILLION REASONS WHY WE MUST AUDIT THE FED

While the FIRM Act would codify the redaction of the reputational risk standard, it’s not the last step in creating a balance of power between regulators and the banks. Sources on Wall Street also tell Fox that outdated laws and rules like $10k maximum balance transfers and Suspicious Activity Reports (SARs) also create limitations on a bank’s ability to serve customers. 

Federal Reserve in Washington

When asked about next steps for reining in regulatory power, Scott said “changing the playbook is also really important.” 

 

“That is a job that these regulators can do,” Scott added. “They can literally start the process of ripping those pages out of the playbook so that the regulators, when they go into these banks, they don’t have it to call upon.”

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleDingell family in office for 90+ years: Locals praise pavement-pounding, critics say it indicts incumbency
Next Article Russia’s Klyuchevskoy volcano erupts after massive 8.8 earthquake triggers Pacific-wide tsunami warnings

Related Articles

Cincinnati’s restaurant, hospitality industry speak out after brutal fight goes viral

Cincinnati’s restaurant, hospitality industry speak out after brutal fight goes viral

August 2, 2025
GM Corvettes shatter American speed records at legendary racetrack

GM Corvettes shatter American speed records at legendary racetrack

August 2, 2025
McDonald’s testing CosMc’s-inspired drinks at 500 restaurants across the U.S.

McDonald’s testing CosMc’s-inspired drinks at 500 restaurants across the U.S.

August 2, 2025
Nicole Kidman joins Prince Harry, Meghan Markle escaping to luxe hideway that’s angering locals: report

Nicole Kidman joins Prince Harry, Meghan Markle escaping to luxe hideway that’s angering locals: report

August 2, 2025
In a dissent not seen in three decades, two Fed governors wanted to cut interest rates and here is why

In a dissent not seen in three decades, two Fed governors wanted to cut interest rates and here is why

August 2, 2025
US-born job gains outpace losses among immigrant workers

US-born job gains outpace losses among immigrant workers

August 2, 2025
Trump slams Powell as ‘moron’ and calls for Fed’s board to take control of policy moves

Trump slams Powell as ‘moron’ and calls for Fed’s board to take control of policy moves

August 2, 2025
Disney World ferry boat crashes into dock during rough weather: ‘A lot of people screaming’

Disney World ferry boat crashes into dock during rough weather: ‘A lot of people screaming’

August 2, 2025
Jaguar CEO steps down after ‘woke’ rebrand sparked massive social media firestorm

Jaguar CEO steps down after ‘woke’ rebrand sparked massive social media firestorm

August 2, 2025
Don't Miss
Trick your brain into staying motivated with this simple psychology hack

Trick your brain into staying motivated with this simple psychology hack

Lakers, Luka Doncic reach agreement on three-year max contract extension

Lakers, Luka Doncic reach agreement on three-year max contract extension

Cincinnati’s restaurant, hospitality industry speak out after brutal fight goes viral

Cincinnati’s restaurant, hospitality industry speak out after brutal fight goes viral

New York lawmaker sounds alarm on potential ‘devastating’ effects of Mamdani victory: ‘Chaos’

New York lawmaker sounds alarm on potential ‘devastating’ effects of Mamdani victory: ‘Chaos’

Latest News
Russia’s Klyuchevskoy volcano erupts after massive 8.8 earthquake triggers Pacific-wide tsunami warnings

Russia’s Klyuchevskoy volcano erupts after massive 8.8 earthquake triggers Pacific-wide tsunami warnings

August 2, 2025
The ‘financial swamp’ of banking regulators who ‘decide’ which Americans get their bank accounts shut down

The ‘financial swamp’ of banking regulators who ‘decide’ which Americans get their bank accounts shut down

August 2, 2025
Dingell family in office for 90+ years: Locals praise pavement-pounding, critics say it indicts incumbency

Dingell family in office for 90+ years: Locals praise pavement-pounding, critics say it indicts incumbency

August 2, 2025
Bill Maher slams ‘online social justice girls’ for attacking Sydney Sweeney over jeans ad

Bill Maher slams ‘online social justice girls’ for attacking Sydney Sweeney over jeans ad

August 2, 2025
Trump 1.0 alums share chilling Google message from before second-term return: ‘LAWFARE at its finest’

Trump 1.0 alums share chilling Google message from before second-term return: ‘LAWFARE at its finest’

August 2, 2025
Copyright © 2025. Truth Republican. All rights reserved.
  • Privacy Policy
  • Terms of use
  • Contact

Type above and press Enter to search. Press Esc to cancel.