JPMorgan Faces Accusations of Discrimination and Illegal Account Closures, Prompting Market Anxiety

  • They suspect the bank of discrimination
  • And found plenty of examples of illegal customer account closures
  • This story could be a driver of new anxiety in the markets

Late news about banking giant JPMorgan has sparked a new debate about capital use in the banking industry.

The company has been accused of systematically discriminating against its customers and closing their accounts without warning.

Republican attorneys general from 19 states have written an open letter demanding an audit of the company. The appeal was led by Kentucky Attorney General Daniel Cameron.

In a letter to JPMorgan CEO Jamie Dimon, lawyers say the bank violates principles of equality.

The officials focus particularly on accusing JPMorgan of systemic discrimination against customers based on their religious or political beliefs.

And they even give a concrete example.

The bank abruptly closed the checking account of the National Committee for Religious Freedom (NCRF), a nonprofit organization that protects the right to choose religion for all Americans.

The account was closed in May 2022. And, according to the letter, the decision was made directly by JPMorgan’s “corporate office” without any clear justification for the client.

The attorneys general are asking the bank to publicly disclose its internal policies regarding account closures.

We will be watching this story closely, because scandals like these  are affecting investor sentiment and the financial market in general.