JPMorgan Chase CEO Jamie Dimon and Bank of America CEO Brian Moynihan met with Republican senators on Capitol Hill Thursday. They discussed the issue of debanking, where banks deny services to specific customers or industries. Moynihan said Bank of America has 70 million customers and is “happy to serve anyone.” He declined to comment on former President Donald Trump’s allegations that the bank restricts access to conservatives.
Dimon said the meeting was “excellent” and people discussed improving the country. He denied that JPMorgan debanks people based on political or religious affiliations. However, he said some things could be fixed and that rules and requirements are onerous, causing some people to be debanked who shouldn’t be.
When asked if he primarily blames banking regulators for debanking issues, Dimon said, “Pretty much, yeah.”
The meeting was led by new Senate Banking Chairman Tim Scott, who prioritized debanking transparency. Scott called the roundtable “constructive” and said Congress needs to address the impacts of “burdensome and arbitrary regulations” from the Biden administration. Scott stated that debanking should concern everyone and that law-abiding citizens and legal businesses deserve access to financial services, regardless of industry or political affiliation.
He emphasized that no regulator or financial institution is above the fairness and market access principles. Several CEOs from large U.S. banks are set to meet with the Senate Banking Committee to discuss solutions to debanking. This follows recent congressional hearings on the practice, which has impacted businesses and individuals in industries like cryptocurrency and cannabis.
GOP senators discuss debanking reform
Senator Kevin Cramer has actively addressed debanking and highlighted the need for legislative solutions like the Fair Access to Banking Act. Republican and Democratic senators expressed the need for a bipartisan fix.
Bank CEOs like Moynihan and Dimon have denied allegations of politically motivated debanking. They have called for more clarity and reform in banking rules and guidelines related to debanking decisions. The roundtable aims to produce actionable solutions to ensure banks do not categorically discriminate against entire legal and constitutionally protected industries.
During his visit to Washington, D.C., JPMorgan Chase CEO Jamie Dimon advocated restructuring the financial regulatory agencies overseeing his bank and the broader industry.
Dimon said it’s time to “take a step back and look at all the rules and regulations put in place.” He downplayed concerns about potentially closing the Consumer Financial Protection Bureau (CFPB), noting that consumer protection is also a responsibility of other agencies like the SEC, OCC, and the Federal Reserve. To illustrate the complex regulatory oversight affecting JPMorgan, Dimon distributed a “spaghetti chart” chart that shows the numerous lines drawn to various regulators. Dimon addressed debanking, asserting that JPMorgan does not deny services based on religious or political affiliations.
However, he noted areas needing reform, mainly anti-money laundering rules, which he argued often push consumers out of the system due to banks’ fears of litigation and heavy fines. The closed-door meeting included Senate Banking Committee Chair Tim Scott, other committee Republicans, and several leading banking CEOs. The growing concern over debanking has mobilized some GOP lawmakers to pursue legislation defining clearer guidelines for when banks can deny services.
Senator Scott described the meeting as a candid discussion focused on flaws in the current regulatory system that lead to undue debanking. He noted that many debanking problems could be alleviated with more precise, less subjective guidelines for identifying risky customers.