The Consumer Financial Protection Bureau (CFPB) announced a new initiative on Wednesday to scrutinize whether the nine largest national banks in the United States are adhering to federal consumer protection laws. This move follows a report by the Office of the Comptroller of the Currency (OCC), which found that these banks may have engaged in practices that exclude customers based on their political or religious beliefs.
The OCC's comprehensive report spans from 2020 to September 2025, evaluating major institutions like JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC Bank, TD Bank, and BMO Bank. Together, these institutions manage assets worth $12.7 trillion, representing 76% of the total assets overseen by the agency.
To reach its conclusions, the OCC examined nearly 100,000 complaints submitted to the institutions under its jurisdiction and reviewed approximately 50,000 documents, encompassing around 420,000 pages, provided by the banks themselves.
Identifying Troubling Practices
The regulator pinpointed two key problematic practices: "reputational risk" policies lacking objective financial risk criteria, and sector-specific restrictions that limit service access in industries such as oil and gas, coal mining, firearms, detention centers, tobacco, and digital assets.
Specific instances included the closure of a Trump/MAGA merchandise vendor's account by a bank-affiliated payment processor in February 2021, and a refusal to serve a public educational organization in February 2023 due to its political arm's exclusive support for Democratic candidates.
Regulatory Actions and Future Implications
Comptroller Jonathan V. Gould presented these findings during a press conference in Lexington, Kentucky. "What started as executive decisions to exclude disfavored industries evolved into opaque institutional bureaucracies allowing bank employees to deny access to financial services," he stated.
Gould emphasized that while the agency does not mandate banks to serve every customer, they should evaluate clients using objective risk-based criteria.
The report does not impose immediate fines or sanctions. However, as reported by Reuters, the regulator indicated potential regulatory changes may be considered to deter such practices.
Meanwhile, the CFPB will initiate compliance investigations into the identified institutions and other financial entities, focusing on the Equal Credit Opportunity Act (ECOA), the Fair Credit Reporting Act (FCRA), and provisions related to unfair, deceptive, or abusive acts or practices (UDAAP).
The agency has also updated its complaint portal, enabling consumers who believe they have been unjustly excluded from banking services to file a formal grievance.
This dual regulatory action aligns with Executive Order 14331, signed by President Trump in August 2025, directing federal banking regulators to review and eliminate the use of "reputational risk" in their supervisory frameworks.
The Bank Policy Institute (BPI), representing major banks, issued a statement supporting fair access: "The banking industry backs equitable access to banking services and has worked to ensure government regulations enable banks to serve law-abiding clients," the association stated, expressing willingness to collaborate with the government and Congress.
Gould warned that despite some banks' efforts to amend these practices, he is uncertain of their sufficiency: "The OCC will assess additional regulatory changes applicable to the largest entities to minimize the likelihood of these harmful practices recurring in the future."
Key Questions About Bank Practices and Regulations
What prompted the CFPB to investigate the major banks?
The CFPB launched its investigation following an OCC report indicating that major banks might have excluded customers based on political or religious beliefs, potentially violating federal consumer protection laws.
Which banks are being scrutinized?
The investigation focuses on nine major banks: JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC Bank, TD Bank, and BMO Bank.
What are "reputational risk" policies?
"Reputational risk" policies are practices that banks use to assess the potential harm to their reputation from serving certain clients or industries, which can lead to exclusion without objective financial risk criteria.