DOJ Launches 'Debanking' Probe into JPMorgan, Bank of America
JPM sits 19% above its 52-week low of $262.71 on light trading volume (0.3× avg).
Summary
The Justice Department, through Jeanine Pirro's office, has issued far-ranging subpoenas to major banks, including JPMorgan Chase and Bank of America, to investigate allegations of improperly closing customer accounts for political reasons, known as 'debanking'. This probe escalates a campaign by President Trump and follows his personal lawsuit against JPMorgan over account closures. The investigation carries significant legal and reputational risks for the banks, with potential violations of laws like FIRREA, which was used in post-2008 financial crisis prosecutions.
At the time of this announcement, JPM was trading at $311.68 on NYSE in the Finance sector, with a market capitalization of approximately $835.1B. The 52-week trading range was $262.71 to $337.25. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.