Federal prosecutors subpoena major banks in debanking probe

Federal prosecutors have launched a criminal investigation into whether major U.S. banks illegally closed customer accounts based on political affiliations or business sectors. The probe, led by U.S. Attorney Jeanine Pirro for the District of Columbia, has issued subpoenas to several financial institutions, including JPMorgan Chase, Bank of America, and Wells Fargo. The subpoenas demand lists of customers whose accounts were terminated and the reasons for those closures.

The investigation escalates a long-running dispute over the practice known as "debanking," where banks sever relationships with clients deemed to pose legal, regulatory, or reputational risks. Banks have consistently stated that they do not close accounts for political or religious reasons, attributing such decisions to compliance with federal regulations, including anti-money laundering rules. A spokesperson for JPMorgan Chase stated last year that the bank has never closed an account due to political or religious affiliation.

The probe follows an executive order signed by President Donald Trump in August 2025 directing federal bank regulators to investigate "politicized or unlawful debanking." Regulators were...