The Complex Debate Over the Right to a Bank Account in America

During his tenure as a financial regulator in the early Trump administration, Brian P. Brooks frequently encountered complaints about 'debanking'—the practice of banks closing accounts without prior notice. Despite the volume of grievances, Brooks often resisted engaging deeply with these concerns.

The term 'debanking' was commonly used by controversial industries such as private prisons and fracking companies, which reported that their bank accounts were abruptly shut down. As acting comptroller of the currency at the time, Brooks viewed the situation through a free-market lens, believing it was not within his authority to force banks to maintain relationships with any specific customer.

Now, five years later and having transitioned to leading a brokerage firm and advising cryptocurrency enterprises, Brooks acknowledges the issue’s gravity. He has recently joined a growing contingent in the financial sector advocating for stricter oversight and intervention against the practice, engaging with former administration officials both in Washington and at private venues in Florida.

Brooks argues, 'Just as an electric utility cannot refuse service based on personal characteristics, banks should not be permitted to deny accounts arbitrarily.'

The outcry over debanking has amplified in recent months, with conservative groups, religious organizations, the Trump Organization, and cryptocurrency firms all accusing financial institutions of politically motivated discrimination. Simultaneously, liberal lawmakers have raised concerns for individuals and businesses facing sudden account closures and ATM access restrictions without explanation.