SerpApi.Org
Executives behind Reagan, the biopic that cast Dennis Quaid as the titular American icon, have just divulged that their firm was suddenly dropped by its financial institution in the midst of the feature film’s production — and, years later, they still have no clue as to why.
It was the end of 2020, when the topic of “debanking” had not yet made headlines as it would in the weeks following the 2021 Capital Riots.
Must Read
Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one
Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP
Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself
RawHide Pictures was only a few months into filming the $30 million drama — and in peak holiday season of that year — when the team received a letter from the Bank of America stating that their accounts were being shuttered within 30 days.
In the communication, which RawHide shared with the New York Post (1) this week, the nation’s second-largest bank wrote that it had “completed a review” of its relationship with the company, and concluded that it “wished to close” said relationship. No further explanation was given.
“As you are aware, your agreement with the bank allows either party to unilaterally exit the relationship at any time upon the required notice,” stated the December 29 notice.
The producers, who had to try to transfer everything over to new accounts at another provider, told the Post that they still haven’t received any justification for why the jarring move, which caused “irreparable and significant harm” to the project and business, was made, though they wondered if it was politically motivated.
“We are not a political entity but merely a film whose main character happened to spend part of his life in politics,” they said.
Probe into debanking ongoing
The revelation comes while both the Department of Justice (2) and the Office of the Comptroller of the Currency (3) investigate allegations that banks such as Wells Fargo and Bank of America ideologically discriminated against members of the public, particularly following the 2021 Capital riots.
President Donald Trump, who himself was “debanked” after the incident (which JPMorgan Chase admitted to this February (4)), has taken institutions to task regarding what he calls (5)“unacceptable practices to restrict law-abiding individuals’ and businesses’ access to financial services on the basis of political or religious beliefs or lawful business activities.” He has since signed an executive order to punish such practices.
Professionals allegedly familiar with the matter have cited “reputational risk” (6) as one possible motivation for the termination of certain accounts. Banks, however, insist that they do not shut down (7) accounts for political leanings.
Indeed, there is the argument that at least some of the cases in question could potentially be examples of governmental debanking (8) and/or debanking with overlapping causes, though political debanking is not out of the question, despite some of Trump’s critics dismissing the matter as “not a real issue (7).”
The Office of the Comptroller of the Currency has determined that nine US institutions made “inappropriate distinctions (9)” when selecting customers to deprive of services or formally review, which the organization considers a form of “weaponizing finance.”
Read More: 7 top habits of 'quietly wealthy' Americans. How many do you follow?
Experience not reserved to conservatives
For those who have experienced a bank breakup, the issue is very much real, very much perplexing and very much damaging.
Claims of debanking have come from everyone from conservative-identifying residents to Christian charities and Arab-identifying Americans (10), with more than 15,000 related complaints submitted to the Consumer Financial Protection Bureau in the last decade (10). Some estimates suggest there could be as many as ten times as many victims (11).
Primary concerns in these circumstances include the abrupt and unexpected inability to access one’s funds, poor customer support and, perhaps most importantly, a lack of transparency about why.
North of the border, there has been similar controversy surrounding banks dropping customers over political affiliations, most famously when (12) the Canadian government used the Emergencies Act to freeze the accounts of hundreds of individuals and entities tied to anti-COVID-19 lockdown protests in 2022. The phenomenon is on the rise in both Canada (13) and the US (11), and considered one of the nation’s top six banking issues by the Canadian Ombudsman for Banking Services and Investments (14).
You May Also Like
The tax breaks in Trump's 'big beautiful bill' expire after 2028 — and experts say most people won't act in time. What to do before the window closes
'Gold still crashing!': Robert Kiyosaki admits he was wrong — but doubles down on his $35K prediction
Millionaires under 43 hold only 25% of their wealth in stocks. Here’s where their money is actually going
I'm 49 years old and have nothing saved for retirement. What do I do? Don't panic. Here are 7 ways to catch up fast
Enjoyed this Moneywise story? Click Follow above for more. To get our best content and exclusive interviews first, join 250,000+ readers who subscribe to our weekly newsletter.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
New York Post (1); CNBC (2), (4); Reuters (3), (6), (7); Yahoo (5); Cato Institute (8); Bloomberg (9); The Free Press (10); American Banker (11); The New York Times (12); NOW Toronto (13); Ombudsman for Banking Services and Investments (14)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
