OCC Report Finds Nine Major Banks Used Reputation Policies to Deny Services Based on Political Views

Key points

• The OCC reviewed JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC Bank, TD Bank, and BMO Bank.
• The report found that all nine banks used 'reputation risk' policies lacking clear, objective standards, which could disadvantage customers based on political or religious views.
• Specific cases included JPMorgan’s WePay closing accounts for merchants selling conservative merchandise and Capital One declining relationships with abortion-rights and gun-rights groups.
• The OCC is considering new rules to prevent political or religious discrimination but did not announce fines or sanctions in the initial release.
• The findings align with President Trump’s long-standing accusations of 'debanking' against major financial institutions.

Background

This development follows a broader regulatory scrutiny of large banks under the current administration. In early October 2026, the OCC and other Treasury regulators imposed over $1.2 billion in penalties on Bank of America for anti-money-laundering failures. The current report examines whether these compliance efforts inadvertently contributed to the denial of services for politically sensitive customers. This follows earlier debates about the reliability of federal digital services and the political pressures facing financial regulators, as seen in recent coverage of the America.gov AI portal and monetary policy decisions.

How outlets are covering it

The OCC, led by Comptroller Jonathan Gould, emphasized that banks should base decisions on financial risk rather than the political or social preferences of employees or executives. In contrast, JPMorgan Chase stated that its policies prohibit discrimination and that the WePay issue did not meet its expectations, noting that the business has since been shut down. The Bank Policy Institute, representing the industry, supported the need for clear standards that promote access while maintaining sound risk management. CNBC highlighted the political dimension, noting that the report lends regulatory weight to President Trump’s grievances, while Yahoo Finance focused on the breadth of the review and the lack of immediate sanctions.

Why it matters

The report highlights a significant tension between financial risk management and political neutrality in banking. If the OCC implements new rules, it could reshape how large banks evaluate customers, potentially impacting access to services for politically active groups. The lack of comprehensive remediation for affected customers suggests that the issue may require further regulatory action or legal challenges to resolve.

What to watch

The OCC is considering additional rules to prevent political or religious discrimination in banking. The banks have revised their policies, but the OCC has not yet announced specific fines or sanctions. Further developments may include the implementation of new regulations or legal actions from affected customers or political groups.