US Justice Department Subpoenas Major Banks in Probe into Alleged ‘Debanking’

The US Department of Justice has issued subpoenas to several major American banks, including JPMorgan Chase and Bank of America, as part of an expanding inquiry into whether financial institutions have improperly closed customer accounts for political or ideological reasons, according to a person familiar with the matter.

The subpoenas, some of which date back to last year, were issued by the US Attorney’s Office in Washington, DC, led by Jeanine Pirro. The Wall Street Journal first reported the existence of the legal requests.

The Justice Department is seeking detailed information from banks on individuals who were allegedly “debanked” — a term used to describe the termination or restriction of banking services — along with explanations and internal documentation outlining the rationale for account closures.

According to the report, investigators are requesting lists of affected customers, records of account terminations, and the compliance or risk-based justifications used in each case. The scope of the inquiry suggests regulators are examining whether standard anti-money laundering and risk controls were applied consistently, or whether broader discretionary practices may have resulted in politically sensitive exclusions.

The office is also seeking comparable records from Wells Fargo, sources said.

JPMorgan Chase did not immediately respond to Reuters’ request for comment, while Bank of America and Wells Fargo declined to comment.

The subpoenas come amid increasing political pressure on large US lenders over allegations of “debanking”, with President Donald Trump previously criticising financial institutions and regulators for what he described as discriminatory access to banking services. Last year, he signed an executive order directing regulators to ensure that firms do not deny services to lawful industries or individuals without proper justification.

Separately, the Office of the Comptroller of the Currency has previously noted in supervisory reviews that the largest US banks have, at times, imposed restrictions or limitations on customer relationships as part of risk management practices.

A recent Bloomberg Law report indicated that the Justice Department’s action reflects a broader federal effort to scrutinise how banks balance compliance obligations with fair access to financial services, particularly in cases where account closures may intersect with politically sensitive profiles or industries.

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