Major U.S. banks are responding under the Trump administration with a so-called "anti-woke" stance against progressive agendas. As Republican-controlled state governments consider bank actions that limit transactions with gun manufacturers or fossil fuel corporations as "political discrimination," banks are adjusting their relevant policies or clarifying their positions.
On the 24th (local time), the Wall Street Journal (WSJ) reported that large U.S. banks such as JPMorgan Chase, Citigroup, and Wells Fargo have recently been in contact with state governments in Texas and Oklahoma, emphasizing that they decide whether to engage in transactions with corporations based on financial, legal, and reputational risks rather than political judgments.
This is interpreted as a fallout from reports that the Trump administration is considering an executive order aimed at restricting transactions with banks due to their "political discrimination actions."
According to the WSJ, conservative state governments are already imposing sanctions on banks involved in "political discrimination actions." For example, the state governments of Texas and Oklahoma have already blacklisted banks that limit transactions with gun manufacturers and fossil fuel and gas corporations, excluding them from government financial transactions.
Oklahoma's Minister of Finance Todd Russ noted, "I don't want this to become a MAGA bank," adding that "banks must operate strictly based on financial criteria, free from political ideologies."
The pressure from Republican state governments is increasing. Florida has specified in its laws that banks could face organizational dissolution or restructuring if they discriminate against customers for political or religious reasons, with similar legislation already passed in Tennessee and Idaho.
In response, banks are pivoting towards a "neutral finance" stance, revising internal policies ahead of Trump's sanctions. Citigroup recently communicated its intention to withdraw its policy of not engaging in transactions with corporations that sell firearms to individuals under 21 during a meeting with Texas Governor Greg Abbott.
Citigroup and JPMorgan have formalized their stance that they do not discriminate against corporations for political reasons and have also withdrawn from the "Net-Zero Banking Alliance," a banking coalition aimed at addressing climate change.
The movement is spreading throughout the industry. Bank of America (BofA) rescinded its policy prohibiting transactions with coal-related corporations by the end of 2023, while Goldman Sachs, Morgan Stanley, and Wells Fargo are also reviewing measures to ease transaction restrictions. A spokesperson for JPMorgan stated to the WSJ, "Understanding and sharing the perspectives of policymakers will lead to better banking services."
Allegations that the banking sector is discriminating in transactions due to political issues have been consistently raised by conservatives and Christian organizations. In January, during a speech at the World Economic Forum in Davos, President Trump also sparked controversy by stating, "Banks must keep their doors open fairly to supporters of the conservative camp."
Personal friction between Trump and the banking sector is also seen as influencing regulatory reviews. In March 2021, during the Biden administration, Trump claimed that "the accounts of companies associated with Trump Group were temporarily closed for political reasons," subsequently suing Capital One directly. Trump's son, Eric Trump, expressed animosity towards the banking sector by stating at a cryptocurrency event in May, "Some major banks deserve to collapse."
Large banks are aligning with the Trump administration's stance while also expanding channels of communication with state governments to lift blacklist designations. Minister Russ stated, "It's a positive change that JPMorgan has withdrawn from climate-related collective actions," while adding, "To return to public transactions, banks must become thoroughly neutral financial institutions without political or philosophical interventions."