MW JPMorgan and Bank of America stocks drop as Trump warns of payback for 'bad' treatment

By Steve Gelsi

Trump confirms plans for an executive order to punish banks for what he said was discrimination against conservatives. Meanwhile, banks praise efforts to overhaul regulations.

Big banks said they agree with President Donald Trump that financial regulations need an overhaul, even as their stock prices dropped Tuesday after the president confirmed plans to issue an executive order to punish those that he said discriminate against conservatives.

Trump singled out JPMorgan Chase & Co. (JPM) and Bank of America Corp. $(BAC.SI)$ when asked about a Wall Street Journal report on his planned executive order.

Trump complained that the banks acted unfairly toward him when he wanted to open accounts with them.

"I had hundreds of millions of dollars - many, many accounts loaded up with cash, and [JPMorgan] told me, 'I'm sorry sir, we can't have you,'" Trump told CNBC. "The banks discriminated against me very badly. They discriminate against many conservatives ... [or] it's really Trump supporters."

Trump said he was turned down by Bank of America as well.

JPMorgan Chase's stock dropped 2.1% in morning trading, enough to pace the Dow Jones Industrial Average's DJIA decliners, and Bank of America shares shed 2.2%.

The KBW Nasdaq Bank Index BKX moved lower by 1.5% and the Financial Select SPDR Fund XLF of larger bank stocks fell 1%.

A spokesperson for JPMorgan Chase said, "We don't close accounts for political reasons, and we agree with President Trump that regulatory change is desperately needed."

The bank spokesperson said JPMorgan looks forward to working with Trump on overhauling banking regulations and praised his effort to address shortfalls in the current regulatory system.

A Bank of America spokesperson declined to comment ahead of a scheduled appearance by Chief Executive Brian Moynihan on CNBC.

A Bank Policy Institute spokesperson said, "We're hopeful that any forthcoming executive order will ... [direct] regulators to confront the flawed regulatory framework that gave rise to these concerns."

Republicans such as South Carolina Sen. Tim Scott have also complained about banks' alleged treatment of conservates. Scott, who chairs the Senate Banking Committee, said during a hearing in February that "it is incredibly alarming and disheartening" to hear about banks "cutting off services to digital-asset firms, political figures and conservative-aligned businesses and individuals."

Trump has complained about unfair treatment by banks in the past, particularly around their reluctance to provide services related to cryptocurrencies.

-Steve Gelsi

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August 05, 2025 11:14 ET (15:14 GMT)

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