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President Trump Orders Federal Banking Agencies to Examine for Debanking. President Trump has issued an Executive Order and fact sheet addressing “politicized or unlawful debanking” by banks and credit unions, including acts that restrict access to financial services based on a customer’s political or religious beliefs or lawful business activities. The order requires the federal banking regulators to review financial institutions for policies or practices that encourage politicized or unlawful debanking and to take action, including fines, consent decrees, and other disciplinary measures, for related violations of law. Also, the Small Business Administration is ordered to require financial institutions with SBA-guaranteed loans to identify and reinstate clients that were debanked in the past, identify potential clients who have been denied access in the past, and provide “notice to each victim advising of the denied access and the renewed option to engage in such services previously denied,” among other requirements. Read the Executive Order, fact sheet, and OCC Comptroller Gould’s statement.
August 8, 2025
Federal Court Vacates Debit Interchange Fee Caps. A federal district court in North Dakota has vacated the Federal Reserve’s standards for setting debit interchange fees in Regulation II (Debit Card Interchange Fees and Routing), which have limited debit card interchange fees to 21 cents plus 0.05% per transaction since 2011. The court stated that the Federal Reserve exceeded its authority by allowing debit card interchange fees to incorporate the recovery of fraud prevention and other costs. However, the judge temporarily stayed the decision pending a potential appeal by the Federal Reserve. Read the order and a related article.
August 8, 2025
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