Big U.S. banks found themselves on the defensive Thursday, with Bank of America saying it doesn’t have a “political litmus test” for clients after President Trump suggested that leading financial institutions weren’t letting conservatives do business with them.
“I hope you start opening your bank to conservatives, because many conservatives complain that the banks are not allowing them to do business within the bank, and that included a place called Bank of America,” Trump said in remarks at the World Economic Forum in Davos, Switzerland, targeting Bank of America (BAC) and JPMorgan Chase (JPM).
The comment was directed at Bank of America CEO Brian Moynihan. Both banks in their statements Thursday said they don’t consider politics when closing accounts. JPMorgan pressed for a fresh approach from Washington to fighting financial crime, while Bank of America noted the “extensive” regulations governing such decisions.
“We have never and would never close an account for political reasons, full stop,” a JPMorgan statement read. “We follow the law and guidance from our regulators and have long said there are problems with the current framework Washington must address. We welcome the opportunity to work with the new Administration and Congress on ways to remove regulatory ambiguity while maintaining our country’s ability to address financial crime.”
JPMorgan CEO Jamie Dimon had also discussed the subject on a company podcast earlier this week.
“We serve more than 70 million clients and we welcome conservatives,” a Bank of America statement read. “We are required to follow extensive government rules and regulations that sometimes result in decisions to exit client relationships. We never close accounts for political reasons and don’t have a political litmus test.”
The KBW Nasdaq Bank Index (BKX) of big financial companies finished the day in the green, though it was lower than levels seen in early afternoon trading. Both JPMorgan and Bank of America shares rose more than 1% today.
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