politics
Justice Department Investigates Banks Over Account Closures of January 6 Defendants and Trump Allies
Prosecutors are reviewing whether major banks closed accounts of Trump supporters and January 6 defendants for political reasons. The probe is tied to administration efforts to compensate people the president says were harmed by prior government actions.
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A Justice Department probe is examining whether some of the nation’s biggest banks closed accounts of defendants charged in the 2021 Capitol riot and others for political reasons. The probe had been raised to the Trump administration as a way to support its efforts to compensate people the president claims were victims of weaponization, according to people briefed on the matter.
Some of the president’s allies in recent months have suggested to administration officials that any possible settlements from the debanking probe could be used to compensate Trump supporters who the president believes suffered financial harm because of their involvement in the January 6 attack, the people familiar with the matter said.
8 billion fund as part of an agreement under which President Donald Trump withdrew a lawsuit against the IRS over a 2019 leak of his tax records. 8 billion fund was initially supposed to be backed by the US Treasury. Trump has said he hasn’t abandoned the idea of finding a way to compensate his supporters who he claims were unfairly targeted by the government.
As many as 10 banks, including Bank of America, Wells Fargo and JPMorgan Chase, are the subject of an ongoing probe since last year that has focused on so-called debanking of Trump supporters and conservatives, the people briefed on the matter said.
U.S. Attorney Jeanine Pirro’s office are the latest indicator of the administration’s interest in finding a way to punish banks for closing accounts, including those belonging to the president and the Trump Organization.
The probe is focused on whether banks discriminated against conservatives and industries disfavored by the Biden administration, including people who were involved in the Jan. Prosecutors are examining whether the banks’ conduct violated a number of laws including the Financial Institutions Reform, Recovery, and Enforcement Act, which allows financial penalties for fraud and other violations, according to one person briefed on the matter.
