The U.S. Attorney for the District of Columbia, Jeanine Pirro, has issued subpoenas to several major financial institutions, including JPMorgan Chase, Bank of America, and Wells Fargo, as part of an investigation into allegations of customers being denied banking services for political or ideological reasons. This inquiry examines whether banks have illegally closed accounts based on factors such as ideological alignment or chosen profession.

DOJ Investigation and Legal Strategy

Jeanine Pirro, a former Fox News anchor and federal prosecutor, is leading the U.S. Attorney’s Office for the District of Columbia in this probe. The subpoenas, first reported by The Wall Street Journal, seek information on account closures, customer offboarding decisions, and internal records explaining why certain individuals or businesses were denied access to banking services. Banks have been asked to provide lists of customers whose accounts were allegedly closed and the reasons for these actions.

Pirro and her prosecutors are seeking to bring sanctions and charges under the federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989. This statute was previously utilized to penalize banks following the 2008 mortgage crisis. The investigation builds on a broader effort initiated by the Trump administration to examine claims that banks used their market power to exclude politically disfavored customers or entire industries from the financial system.

Banks, including JPMorgan Chase, have stated that they do not close accounts for political or religious reasons. JPMorgan Chase has indicated that accounts are closed when they create legal or regulatory risk for the company, citing rules and regulatory expectations as reasons for such actions. The U.S. Attorney’s Office for the District of Columbia declined to comment when contacted by The Independent, and The Independent has reached out to Bank of America and JPMorgan Chase for comment.

Historical Context and Industry Impact

Concerns about "debanking," the process by which banks suddenly close accounts, have circulated for years, particularly among conservatives and businesses operating in controversial but legal sectors. Supporters of the investigation argue that these concerns have received limited attention from regulators and law enforcement. Pirro, as an attorney, has been outspoken regarding alleged institutional bias against conservatives and right-wing individuals on Wall Street.

President Donald J. Trump previously filed a lawsuit against JPMorgan Chase and CEO Jamie Dimon for $5 billion, alleging he was "debanked" for political reasons after the January 6, 2021, Capitol attack. JPMorgan Chase has stated that this lawsuit has "no merit." The Trump Organization also sued Capitol One, accusing it of "unjustifiably" closing accounts.

The federal Office of the Comptroller of the Currency (OCC), under the Treasury Department, previously found that nine of the largest banks in the United States had restricted financial services to some clients in controversial industries. President Trump issued an executive order early in his administration for the OCC to investigate debanking allegations. The OCC’s preliminary findings indicated that banks such as JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC Bank, TD Bank, and BMO Bank engaged in debanking. Banks are required by federal law to provide equitable access to banking products.

Relevance to the Adult Industry

This development is significant for the adult industry, which has routinely experienced debanking and banking discrimination. Adult industry trade organization the Free Speech Coalition has lobbied Congress and the U.S. government for years regarding equitable banking laws, particularly for legal and consensual sex work and adjacent businesses. The coalition has identified common ground with conservative Republican activists who have lodged similar claims against banks and the financial industry concerning firearm retailers, cash checking services, pawn shops, and religious organizations.

The Free Speech Coalition is also working to establish an adult industry-only federally chartered credit union. This initiative aims to offer a banking solution outside of major banks and to mitigate the trend of debanking. Debanking itself has been a controversial and disputed subject, but investigations by news organizations and civil society groups, including the American Civil Liberties Union (ACLU), have pressed federal banking regulators and self-regulatory bodies within the financial and payment processing sectors for reform.

Pirro's subpoenas could only be issued on behalf of preferred groups and individuals. The current investigation appears to be running alongside a review by federal banking regulators, including the OCC, which previously indicated preliminary evidence suggesting certain industries may have faced heightened barriers to banking access.

Key Facts

  • Jeanine Pirro, U.S. Attorney for the District of Columbia, issued subpoenas to major banks.
  • Subpoenaed institutions include JPMorgan Chase, Bank of America, and Wells Fargo.
  • The investigation focuses on allegations of customers being "debanked" for political or ideological reasons.
  • Prosecutors are seeking sanctions and charges under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
  • The adult industry has faced similar banking discrimination, prompting the Free Speech Coalition to advocate for equitable banking laws and explore establishing a federally chartered credit union.
  • The Office of the Comptroller of the Currency (OCC) previously found that nine large U.S. banks restricted financial services to clients in controversial industries.