Big banks including JPMorgan Chase, Citigroup, Wells Fargo and Bank of America are working to calm concerns from Republican-led states like Texas and Oklahoma, according to a Wall Street Journal report on Tuesday citing sources close to the matter.
These states have restricted some banks from state contracts, accusing them of unfairly targeting industries such as guns and fossil fuels for political reasons. The banks insist their decisions are based on financial risks and compliance, not politics. However, they worry about possible federal actions from the Trump administration, which is reportedly considering an executive order on "debanking."
Oklahoma's state treasurer, Todd Russ, said he wants banks to avoid political biases and focus on managing investments responsibly. To address the issue, some banks have already met with state officials to clarify their policies and have updated their stances to emphasize neutrality. Some banks have allegedly even left climate-related alliances that conservative leaders oppose.
