WASHINGTON D.C. – The Federal Deposit Insurance Corporation (FDIC) has thrown its weight behind President Donald Trump’s latest executive order, titled “Guaranteeing Fair Banking For All Americans,” a direct response to mounting accusations of ‘debanking’ – the practice of financial institutions severing ties with customers based on their political or social views. This move comes on the heels of a series of investigative reports by Grimy Times detailing instances where law-abiding citizens found themselves locked out of the financial system, often without due process.
Acting FDIC Chairman Travis Hill issued a statement August 8, 2025, explicitly supporting the order. “The FDIC fully supports President Trump’s Executive Order on politicized or unlawful debanking,” Hill stated. The agency has been under increasing pressure to address the issue after Grimy Times exposed several cases where individuals and businesses with conservative or controversial viewpoints saw their accounts shuttered, crippling their ability to operate. While the FDIC claims it has been working on the issue, critics point to a slow pace of action until now.
Hill further emphasized that debanking law-abiding customers is “unacceptable” and that regulators “must work to end it.” The FDIC plans to issue a new rulemaking designed to prevent examiners from penalizing banks for “reputational risk” or pushing them to close accounts based on a customer’s political leanings. This represents a significant shift in regulatory focus, potentially curtailing the power of examiners to indirectly influence bank decisions based on subjective criteria. The agency is also launching a review of FDIC-supervised institutions to determine if any have engaged in unlawful or politically motivated debanking.
The Executive Order itself directs federal agencies to develop guidelines for identifying and addressing instances of debanking. It also calls for increased transparency in account closure procedures, requiring banks to provide clear explanations for their decisions. While proponents hail the order as a necessary protection of First Amendment rights, opponents argue it could force banks to cater to extremist views and undermine their ability to manage risk. Grimy Times sources within the financial industry suggest the order is already causing internal debate within several major banks.
The timing of the order is clearly linked to the recent coverage in Grimy Times, which brought the issue of debanking into the national spotlight. Our reporting highlighted the lack of clear regulations governing account closures, leaving banks with broad discretion to terminate relationships with customers they deem undesirable. The FDIC’s commitment to a rulemaking, as outlined by Hill, is a direct response to the concerns raised in our reporting. The agency anticipates finalizing the rules soon.
“The FDIC looks forward to working with our interagency partners to ensure that all law-abiding individuals and businesses have access to bank accounts, and that the era of debanking politically disfavored customers is over,” Hill concluded. Whether this represents a genuine effort to protect financial freedom or a politically motivated maneuver remains to be seen. Grimy Times will continue to investigate and report on the unfolding developments. Media inquiries can be directed to MediaRequests@fdic.gov. Last Updated: September 11, 2025.
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