BATON ROUGE, La. – Louisiana State Treasurer John Fleming, M.D., announced his satisfaction with Bank of America’s recent decision to discontinue a controversial policy that allowed accounts to be closed based on religious or political viewpoints.
“This reversal validates our department’s firm stand against debanking discrimination,” Fleming said. He noted that Louisiana had earlier rejected Bank of America’s bid for the state’s financial services contract due to concerns over the bank’s “viewpoint” rule.
Fleming emphasized, “This is a victory for freedom of belief and financial fairness. Louisiana refused to do business with institutions that weaponize finance against people of faith or political conservatives.”
What the Rule Covered, and How It Changed
Bank of America’s revised code of conduct, enacted in late June, now explicitly prohibits discrimination based on religious viewpoints, a provision that mirrors reforms already adopted by peer institutions such as JPMorgan Chase.
The fallout from BofA’s previous policy drew bipartisan criticism. Faith-based nonprofits, conservative charities, and public figures, including then-President Trump, were among those who reported losing banking access.
Industry analysts say that most account closures rooted in “reputational risk” reflected compliance with broader regulatory pressures, not political targeting. Banks have insisted that such decisions were not based on political affiliation.
Debanking: A Nuanced National Debate
While the issue has high-profile political overtones, data suggests that politically motivated account closures are rare. A Reuters analysis of Consumer Financial Protection Bureau (CFPB) data found that just 35 of 8,361 complaints since 2012 referenced political or religious bias, less than 1% of total account closure reports.
In contrast, the issue resonates more widely abroad. In the U.K., nearly 42% of charities surveyed reported banking problems, such as sudden account shutdowns or difficulty opening new accounts, according to the Charity Commission.
Federal Backing for Reform
Fleming also credited new federal action, including a Trump executive order barring political or religious debanking, as an important step toward protecting free expression in financial services.
“This is about more than one bank,” Fleming added. “If you want to manage taxpayer dollars in Louisiana, you must respect the constitutional rights of all, regardless of faith or politics.”
He pledged continued vigilance against politically motivated financial discrimination. “This is a major win for religious liberty, transparency, and every organization targeted simply for their beliefs.”