Trump Debanking Crackdown Drives BAC 1.10% Lower as $1.38B Volume Slides to 63rd Rank

On August 7, 2025, Bank of America (BAC) closed with a -1.10% decline, trading at a volume of $1.38 billion, ranking 63rd in the market. The stock’s performance coincided with a broader regulatory shift targeting U.S. banks following President Trump’s executive order addressing alleged politicized “debanking” practices. The order mandates federal regulators to investigate whether financial institutions denied services based on political or religious grounds and to eliminate “reputational risk” as a regulatory criterion. This move, aimed at curbing perceived bias against conservatives, could reshape compliance frameworks for major lenders like BAC.

The directive instructs regulators to review supervisory data for unlawful debanking cases and refer them to the Justice Department. It also tasks the Small Business Administration with reinstating accounts wrongfully terminated. While the order avoids specifying initial targets, it aligns with Trump’s public claims of personal discrimination by major banks. Bank lobby groups, including the Bank Policy Institute, welcomed the move as a step to reduce regulatory overreach, arguing that vague rules have hindered banks’ ability to serve diverse customers. BAC, which has faced scrutiny over client account closures, may face increased pressure to adjust risk assessments under the new guidelines.

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