Elizabeth Warren Alliances with GOP on "Debanking" Crackdown

Senator Elizabeth Warren (D-MA) has voiced support for the Republican-led effort to curb "debanking," a practice where banks decline service to certain customers.

During a Senate banking committee hearing, Warren praised President Trump for confronting Bank of America CEO Brian Moynihan over debanking practices. "Trump identified a real issue," she remarked.

Warren believes big banks may prioritize risk management over due diligence, leading to the unfair denial of services. She urged the CFPB to reactivate investigations and litigation against financial institutions engaged in非法debanking practices.

The clamor for reform has been amplified by the crypto industry, which alleges unjust denials of banking services.

Bank of America and JPMorgan Chase deny partisan discrimination, citing adherence to anti-money laundering laws. However, they acknowledge the need for clearer regulation in defining high-risk customers.

The Bank Secrecy Act mandates banks to report suspicious customer transactions. However, banks are prohibited from informing customers about these reports, which can hinder law enforcement efforts.

GOP lawmakers have introduced bills aimed at establishing clearer standards for debanking decisions. Senator Kevin Cramer's bill targets lenders with over $10 billion in assets, while Representative Andy Barr's bill focuses on banks with $50 billion or more in assets.