Warren finds common ground with Trump over debanking concerns

Sen. Elizabeth Warren (D-Mass.) seems to have found common ground with President Trump and Republican lawmakers over “debanking” concerns, urging the president Tuesday to take action to prevent Americans from being improperly locked out of the financial system.

The top Democrat on the Senate Banking Committee called on Trump to support the Consumer Financial Protection Bureau’s (CFPB) efforts to combat debanking — the closure of bank accounts that financial institutions consider risky, often with little or no notice.

“I write to request that you take action on preventing the debanking of too many Americans across the country, including consumers unfairly locked out of the financial system due to overdraft fees, religious affiliation, or political beliefs,” Warren wrote in a letter to Trump.

“Your Administration can help to address this problem by supporting the ongoing efforts of the Consumer Financial Protection Bureau (CFPB), the main agency in our government working to stop unfair debanking, and directing other agencies to use their authorities to bring an end to this practice,” she added.

Her call to support the CFPB comes after Trump tapped Treasury Secretary Scott Bessent to serve as acting director of the agency Monday. Bessent reportedly halted staff to halt all work, according to The Wall Street Journal.

GOP lawmakers have long opposed the CFPB, which they argue has overstepped its regulatory authority.

Warren argued Tuesday that Bessent’s order to halt work at the agency “will only impede efforts to stop debanking.” She pointed to several proposed or finalized rules from the CFPB that would bar debanking based on political or religious affiliation and provide debanked customers notice and the ability to appeal account closures.

The Massachusetts Democrat said her staff has identified thousands debanking-related complaints in the past three years, with more than half of those complaints lodged against four major banks — Bank of America, JPMorgan Chase, Wells Fargo and Citigroup.

The letter marks a rare moment of alignment between the progressive senator and Trump. The president took aim at debanking, and Bank of America in particular, during a virtual appearance at the World Economic Forum in Davos, Switzerland.

During an exchange with Bank of America CEO Brian Moynihan, Trump accused his bank and other financial institutions of refusing to do business with conservatives.

“I hope you start opening your bank to conservatives, because many conservatives complain that the banks are not allowing them to do business within the bank, and that included a place called Bank of America,” Trump said.

GOP lawmakers quickly jumped on the bandwagon, with House Oversight and Reform Committee Chair James Comer (R-Ky.) opening an investigation into debanking and Senate Banking Committee Chair Tim Scott (R-S.C.) announcing a hearing on the topic.

Topics

Warren 'concerned' Trump 'stumbling into a trade war' with China tariffs

Sen. Elizabeth Warren (D-Mass.) expressed concern that President Trump is “stumbling into a trade war” by imposing additional tariffs on China and accused him of holding up “critical” bipartisan ...
The Hill - 1d
Once a Trump Foil, Warren Seeks Collaboration on Policy

As Democrats reel from defeat, Senator Elizabeth Warren, the Massachusetts progressive, preaches focus and accountability.
The New York Times - 4d
Bernie Sanders on common ground with RFK Jr. at Senate hearing

Sen. Bernie Sanders (I-VT) found some common ground on issues that Robert F. Kennedy Jr. may be dealing with if he is confirmed as the head of the Department of Health and Human Services. Sanders ...
CBS News - Jan. 29
‘Debanking,’ and the Trump Diss Heard Around Davos

President Trump’s accusation that Bank of America dropped conservatives as clients serves as a reminder C.E.O.s may face unexpected attacks by the White House.
The New York Times - Jan. 27
Trump questions if concerns over TikTok are 'that important.' Some aides say they are

Donald Trump is downplaying the potential threat that TikTok poses to national security -- but numerous aides and allies are squarely at odds with the president.
ABC News - Jan. 23
Scientists sound alarm over concerning find beneath Arctic sea ice: 'It is hard to predict what impacts this could have'

Yahoo News - Jan. 22
Chris Mason: Can opposites Trump and Starmer find common ground?

The prime minister and the new president of the United States are rather different characters.
BBC News - Jan. 20
Warren: Trump expansion talk a distraction from nominees

Sen. Elizabeth Warren (D-Mass.) argued President-elect Trump’s continued talk about expanding the United States is a distraction from the Cabinet picks and nominees he’s chosen to staff his second ...
The Hill - Jan. 9
Trump's IRS pick raises concerns about qualifications, Sen. Warren says

The background of Billy Long, an ex-congressman and auctioneer, raises questions about his qualifications, Sen. Warren says.
CBS News - Jan. 9