The Office of the Comptroller of the Currency (OCC) recently issued two bulletins aimed at preventing banks from engaging in “politicized or unlawful debanking,” aligning with a recent executive order (EO) from President Donald Trump. The OCC warns banks that debanking practices may negatively impact their Community Reinvestment Act (CRA) reviews and licensing applications, and reiterates their legal obligations under the Right to Financial Privacy …
To Carry Out EO, SBA Orders Its Lenders to Review and End Debanking Practices
The US Small Business Administration (SBA) has sent letters to its network of more than 5,000 lenders to stop “politicized or unlawful debanking” practices. The directive follows President Donald Trump’s recent executive order to cease debanking based on political, religious or ideological beliefs. Lenders must take specific actions to ensure compliance with the new federal mandate and avoid discriminatory banking practices. Read more ›
Executive Order Guarantees Efforts Against Debanking Will Continue
The White House recently issued an executive order (EO) aimed at combatting “politicized or unlawful” debanking. Among other requirements, the EO requires “Federal banking regulators” and the Small Business Administration (SBA) to eliminate from their guidance and other materials the use of reputation risk that could result in debanking and take remedial action against past instances of debanking. This EO is the latest in a …
Executive Order Seeks to Eliminate Federal Deployment of Disparate Impact Theory of Discrimination
The Trump administration issued an executive order declaring that federal agencies are to discontinue use of disparate impact liability to administer antidiscrimination statutes. The executive order directs agencies to conduct a review of regulations and other guidance that contemplate disparate impact liability. Notably, the directive applies across the entire government – meaning that this order will significantly impact litigation, compliance and enforcement priorities for federal …