Shares of JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Inc. (NYSE:BAC) are trading lower Tuesday after President Donald Trump claimed the two banks discriminated against him by refusing to accept large deposits.
What To Know: In an interview on CNBC's "Squawk Box," Trump alleged that JPMorgan told him he had 20 days to move "hundreds of millions of dollars in cash" out of the bank. He said he then approached Bank of America with plans to deposit more than $1 billion but was told the bank could not open an account for him. Trump said he ended up placing $10 million at a time in smaller banks around the country. He did not specify when the events occurred or whether they involved personal or business accounts.
The comments come as part of a broader discussion about alleged "de-banking" of conservative individuals and organizations. Trump and other critics argue that banks are denying services based on political beliefs. While banks generally deny this and point to legal obligations under federal anti-money laundering laws, the controversy has escalated. The Wall Street Journal reported earlier this week that the Trump administration is preparing an executive order that would penalize banks for cutting ties with customers based on political grounds.
JPMorgan denied any political motivation in its account closures, saying in a statement, "We don't close accounts for political reasons, and we agree with President Trump that regulatory change is desperately needed." Bank of America declined to comment.
Price Action: Bank of America shares were down 0.45% at $45.65 and JP Morgan shares were down 1.10% at $291.03 at the time of writing, according to Benzinga Pro.
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