Imagine having your bank account suddenly closed, leaving you unable to pay bills or access your own money. It’s a stressful and frustrating experience, and it’s exactly what happens to people who are debanked. And it can have more serious consequences, including financial instability, damage to credit scores, and questions about why you were “de-banked.”
The problem is so pronounced that a coalition of 31 state financial officers from 23 states is supporting President Donald Trump’s new executive order aimed at halting “discriminatory debanking,” calling it a critical step toward restoring fairness and neutrality in the financial system:
For too long, federal regulators have weaponized the concept of ‘reputational risk’ to pressure financial institutions into cutting ties with individuals and organizations they find politically or ideologically objectionable.
This abuse of the banking system is not recent; it can be traced back to regulators being given latitude to “flag” accounts as a “reputational risk” during the Obama administration.
JPMorgan and Bank of America “debanked” President Trump for his alleged role in the January 6 Capitol Hill controversy following pressure from the Biden administration’s banking regulators and the Federal Reserve. Threats from bank regulators meant banking the former president’s money put them in danger of running afoul of rules that prohibit financial institutions from doing business with individuals and companies that present a “reputational risk.”
This abuse of the banking system is not recent; it can be traced back to regulators being given latitude to “flag” accounts as a “reputational risk” during the Obama administration.
Debanking generally refers to the closure or denial of one’s account, because the bank or the government considers it too risky — whether because of the type of commerce involved (e.g., gun sales, cryptocurrency, etc.) or because of the political (e.g., conservative) or religious (e.g., Pro-life) views of the individual or company.
The National Committee for Religious Freedom (NCRF)’s checking account with JP Morgan Chase was suddenly closed with no explanation in the spring of 2022. When the organization — led by a diverse board of Christians, Jews, Muslims, and Hindus dedicated to promoting religious freedom in America — inquired about the closure, they received a list of demands from the financial institution. They were told their account would be reinstated if they provided a list of their large donors, political candidates they support, and an explanation of how the NCRF determines what candidates they support.
President Donald Trump raised the concern earlier this year in remarks to the World Economic Forum; he said that Bank of America and JPMorgan Chase were withholding services to conservatives, something that both banks deny.
Yet, according to members of the Senate Committee on Banking, Bank of America “was the subject of 988 improper closure complaints and 584 improper account denial complaints.” While JPMorgan Chase “was the subject of 1,423 improper closure complaints and 443 improper account denial complaints,” including closing the account of former National Security Adviser Gen. Michael Flynn’s nonprofit, citing “reputational risk.” And there are other examples, including Wells Fargo and Citigroup.
Conservative Alternatives
Take heart, America! There is a way to push back against this politically-driven agenda and still retain your values — your political and religious views.
The verdict is still out on whether there is a “parallel universe,” but there is a “parallel economy.” Conservative-oriented American manufacturers, from coffee brews to confectionery sweets, are burgeoning — and now banks have gotten in on the act.
Consider this quintessential American moniker for a financial institution — Old Glory Bank; its logo embraces the slogan: “the pro-America bank owned by Main Street, not Wall Street.”
And for Americans who don’t want to support banks that directly or indirectly support abortion providers, there is ProLifeFintech: a financial technology company offering checking, savings, business, and investment services operating under the charter of Regent Bank of Tulsa, Oklahoma, which, itself, seeks people of faith for its customer base. Its website offers this statement of purpose: “to show God’s love to our employees, clients & communities.”
So, Are Niche Banks for Real?
In testimony before a hearing of the Senate Banking Committee, Old Glory Bank President and CEO Mike Ring said the bank was created as a market response to both regulatory and participatory debanking.
The founders of the bank, who include Dr. Ben Carson, Larry Elder, and former Oklahoma Gov. Mary Fallin-Christensen, purchased an Oklahoma bank in 2022 with only one branch in the state and launched nationwide digital banking five months later.
Ring told committee members that Old Glory Bank has since grown from 300 local customers to serving more than 50,000 individuals and 2,000 small businesses in all 50 states. “Our customer service center,” he noted, “is in beautiful Durant, Oklahoma (not offshore).”
Bank for Believers
Financial services company, ProLifeFintech, celebrated its opening in March with an event that featured co-founder Nick Vujicic, retired U.S. Army Lt. Gen. Michael Flynn, and Turning Point USA founder Charlie Kirk.
Vujicic shared the personal experiences that inspired this venture, including his own “de-banking” experience. “In 2019, I was framed and canceled for my Christian values.” While he was never told why Chase Bank ended its business relationship with him, Vujicic says he believes he was targeted because of his conservative views, along with a social media following of about 16 million. It was around this same time, he said, that Betsy Gray approached him about an idea she had.
Ms. Gray, Vujicic began, “had been managing a women’s medical clinic that honors the sanctity of unborn life.” She was shocked that the banks and credit unions she reached out to, philanthropically supported America’s biggest abortion provider, Planned Parenthood. Eventually, to become a co-founder of ProLifeFintech, Gray approached Vujicic with her idea: a “bank for believers.” The rest, as they say, is history.
Although niche institutions like Old Glory Bank may be new to the parallel economy, banking and politics have been entwined from the earliest days of the Republic.
America has had a two-party political system since Washington’s first administration; yet, this occurred partially because of disagreement over a bank — Alexander Hamilton’s push to create the Bank of the United States. In fact, the issues over the bank’s creation help explain why Jefferson’s Democratic-Republicans parted ways with Hamilton’s Federalists — if November 4, 2024, is any indication — they remain at odds today.
READ MORE from F. Andrew Wolf Jr:
The Media Must Admit Their Complicity in Russiagate