Bank of America CEO Urges Banking Regulation Reform Amid Debanking Debate

Bank of America’s CEO, Brian Moynihan, has publicly endorsed the need to reform banking regulations in response to growing concerns over so-called “debanking” practices, amid political pressure from U.S. President Donald Trump. Trump has accused major banks, including Bank of America, of rejecting high-profile deposits—such as a reported $1 billion from his post-presidency—on political grounds, labeling the phenomenon as “Operation Chokepoint 2.0.” While Moynihan neither confirmed nor denied the allegations, he shifted the focus to regulatory frameworks that shape financial decisions. He emphasized that compliance with anti-money laundering (AML), Bank Secrecy Act (BSA), and Know Your Customer (KYC) requirements often leads to decisions that may later be perceived as politically motivated [1].

Moynihan acknowledged the broader issue of regulatory inconsistency, arguing that current rules create uncertainty for banks and prevent Congress from having clear oversight. “The President is on the right issue,” Moynihan stated, suggesting that regulatory agencies should not “whipsaw” banks into making decisions without legislative backing. His remarks align with growing calls for clarity in banking compliance, particularly from the crypto industry, which has long argued that regulatory overreach is stifling innovation and access to financial services [1].

Meanwhile, the Trump administration is reportedly preparing an executive order aimed at addressing perceived discriminatory practices in banking. The directive, obtained by The Wall Street Journal, would task regulators with investigating whether banks have violated consumer protection laws, antitrust rules, or the Equal Credit Opportunity Act. If found in violation, institutions could face fines or consent decrees. While no specific banks have been named, the move signals a potential escalation in regulatory scrutiny [3].

Bank of America has taken steps to demonstrate its commitment to non-discrimination, including policy updates and engagement with Republican attorneys general. A spokesperson for the bank stated that it welcomes regulatory clarity and is committed to balancing compliance with innovation. These efforts come amid broader criticism from the crypto sector and conservative business leaders, who have spoken out against alleged political bias in banking decisions. For example, Eric Trump, the president’s son, claimed his family’s business faced “vicious” banking challenges after being deplatformed from multiple institutions [6].

The issue has also drawn attention from regulators. The Federal Reserve, OCC, and FDIC have all signaled a shift in oversight, stating that reputational risk should no longer be a factor in evaluating banks’ customer relationships. This marks a potential turning point in the debate over debanking, as the administration and regulatory bodies move toward a more formalized response [7].

The controversy highlights a tension between regulatory caution and the need for financial accessibility. While banks have traditionally justified strict compliance measures as necessary to mitigate legal and reputational risks, the Trump administration has framed these practices as politically driven. The administration’s proposed executive order and the broader call for regulatory reform reflect an emerging consensus that current rules lack consistency and transparency, creating an environment where financial access is subject to shifting priorities [3].