Elizabeth Warren Agrees With Trump: Big Banks Discriminate

In an unexpected turn of events, Senator Elizabeth Warren (D-Mass.) and President Donald Trump have found common ground in their criticism of big banks, with both acknowledging that these financial institutions engage in discriminatory practices. This agreement comes amidst a growing body of evidence, including thousands of debanking complaints and a series of high-profile cases, that suggest banks are systematically discriminating against certain groups and industries.



The Consumer Financial Protection Bureau (CFPB) complaint database has revealed a staggering number of debanking complaints, with more than half of these complaints filed against the four largest banks in the United States: Bank of America, JPMorgan Chase, Wells Fargo, and Citigroup. These complaints highlight common themes of no warning, no explanation, and no chance to dispute or appeal when accounts are closed. The CFPB's data aligns with the concerns raised by both Warren and Trump, who have identified specific discriminatory practices by banks against various groups and industries.

One of the most prominent examples of bank discrimination is the alleged targeting of conservative customers by Bank of America and JPMorgan Chase, as criticized by President Trump. Additionally, Warren has highlighted several other instances of discriminatory practices, including:

1. Discrimination based on religious or ethnic backgrounds, such as Muslim Americans and Armenian Americans facing debanking due to their last names.
2. Discrimination against lawful cannabis businesses and their employees, who have struggled to access banking services.
3. Discrimination against formerly incarcerated individuals, who often face challenges in maintaining or opening bank accounts due to their criminal history.
4. Discrimination against non-profits and charities operating internationally, which have faced difficulties in accessing banking services due to their international operations.

To address these discriminatory practices, Warren has proposed several CFPB rules and regulations, including:

1. Prohibiting financial companies from using contract clauses that allow for debanking based on free speech, political affiliation, or religious views.
2. Clarifying that when data brokers sell certain sensitive consumer information, they are considered "consumer reporting agencies" under the Fair Credit Reporting Act, requiring them to comply with consumer safeguards.
3. Limiting bank overdraft fees to $5 or a fee that simply covers the bank's costs and losses, with banks also able to extend overdraft loans if they comply with longstanding lending laws, including disclosing the interest rate.
4. Making clear that discriminatory debanking, including for religious affiliation, can be considered an unfair act or practice under the Consumer Financial Protection Act, giving the agency additional authority to protect debanked consumers.
5. Supervising large payment apps like PayPal and CashApp, enabling the agency to more easily weed out unlawful debanking practices on these apps.

These proposed rules aim to protect consumers from unfair debanking and discrimination while ensuring that financial institutions comply with the law. By implementing these regulations, the CFPB can better protect consumers from bank discrimination and ensure fair access to financial services.

In conclusion, both Elizabeth Warren and Donald Trump have acknowledged the existence of discriminatory practices by big banks, with the CFPB complaint database providing evidence to support their claims. To mitigate these discriminatory practices, the CFPB can enhance its effectiveness by empowering the agency to finalize and enforce debanking safeguards, clarifying the role of data brokers, limiting bank overdraft fees, making clear that discriminatory debanking can be considered an unfair act or practice, and supervising large payment apps. By taking these steps, the CFPB can better protect consumers from bank discrimination and ensure fair access to financial services.