Amid debanking drama, banks try to say ‘no’, safely
A basic risk management tool – the ability to turn a customer away – has become a political football
It may not be obvious what the following have in common: US president Donald Trump; Georgia-based rifle-maker Daniel Defense; porn star Chanel Preston; religious non-profit Indigenous Advance Ministries. The connection is that all four claim to have had their accounts closed, or business rejected, by US banks that were concerned about reputational risk. In Trump’s case, the claim is now the subject of a $5 billion lawsuit against JP Morgan.
A clampdown on what’s known as debanking has been one
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