Background on the Regulator and Its Relevance
The Office of the Comptroller of the Currency (OCC) is a crucial regulatory body in the United States responsible for overseeing the largest banks in the country, which hold most of the consumer deposits.
Jonathan Gould, the current Comptroller of the Currency, has taken steps to ensure that the financial system is not used as a weapon. He addressed concerns about individuals being targeted, monitored, and having their bank accounts illegally closed due to their political or religious beliefs.
Political Accusations and Conservative Claims
The White House and conservative groups have accused financial institutions of attempting to silence right-leaning political speech and activities by closing customer accounts and avoiding businesses with conservative leanings.
In recent months, former President Donald Trump alleged that JPMorgan and Bank of America had refused his deposits for political reasons, though he provided no evidence. Neither bank directly addressed these claims, but JPMorgan clarified that they did not close accounts due to political motives.
Low Incidence of De-Banking Complaints
According to a Reuters analysis, there have been few consumer complaints about de-banking in recent years.
OCC’s New Guidelines
In response to these concerns, the OCC has issued new guidelines and bulletins explaining how they will examine banking policies to prevent discriminatory practices and limit the sharing of customer data when reporting suspicious activities to government authorities.
The OCC has clarified that they will review bank license applications and assess compliance with the Community Reinvestment Act (CRA), a law designed to prevent discrimination in lending.
Key Questions and Answers
- What is “de-banking”? De-banking refers to the practice of banks closing or restricting customer accounts due to political or religious beliefs.
- Who is the Office of the Comptroller of the Currency (OCC)? The OCC is a regulatory body in the United States responsible for overseeing the largest banks to ensure compliance with banking regulations and consumer protection laws.
- Why did the OCC issue new guidelines? The OCC issued new guidelines to prevent banks from discriminating against customers based on their political or religious beliefs, following accusations from former President Trump and conservative groups.
- How will the OCC enforce these guidelines? The OCC will review bank license applications and assess compliance with the Community Reinvestment Act to prevent discriminatory practices.
- How common is de-banking? According to a Reuters analysis, there have been few consumer complaints about de-banking in recent years.
