American regulators are ready for next week to reveal a plan focused on how officials are exploring the risk of banks after President Donald Trump moved to get into what he considers to be closing customers for political reasons.
Federal Insurance Corp. would explicitly forbid banking investigators to force creditors so that, according to people who are familiar with this matter, to force creditors to close customer accounts on political, social, cultural or religious reasons. The rule would focus on government supervisory powers, and banks would not be taken over as a result of the proposal to take any further burden that people who asked not to identify the debate on plans.
On Thursday, the agency announced that its Council – which includes the head of the currency administrator – will vote next week to propose measures to disable the use of reputation. In particular, the FDIC did not concern the so -called debating, but the regulators said that monitoring of traditional factors such as credit and market risk is the best way to prevent damage to banks’ reputation.
FDIC and OCC representatives refused to express themselves.
Trump has repeatedly criticized Debanking – or the practice of deprivation of certain individuals and banking service enterprises – and previously stated that JPMorgan Chase & Co. and Bank of America Corp. refused their money. Both companies stated that they did not deny business for ideological reasons.
Consumer advocates claim that there are little evidence that shows that the problem is widespread, but critics claimed that some banking examiners have pushed creditors to stop trading with politically sensitive clients, even if they did not pose any risk to the bank’s security and reliability.
FDIC recently asked big banks whether one of the people had closed customers’ accounts or rejected services to people for political or religious reasons. OCC also asked for the largest creditors, which oversees closed customers.
In August, the President signed an executive order to eliminate practice and demanded that regulators to identify financial institutions that previously participated in unlawful debating. He also ordered regulatory authorities to remove reputation risks from their leadership.
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(Tagstotranslate) banking examiners
