The White House is drafting an executive order that would impose penalties on banks for dropping customers for political reasons

The White House is reportedly drafting an executive order aimed at penalizing banks that terminate customer relationships for political reasons, according to the Wall Street Journal on Monday.

Citing a draft version of the order, the Journal said federal regulators would be directed to investigate whether financial institutions are violating the Equal Credit Opportunity Act, antitrust regulations, or consumer financial protection laws.

The proposed order, which could be signed as soon as this week, would allow for monetary penalties, consent decrees, or other enforcement actions against institutions found in violation, the report stated.

It would also instruct regulators to eliminate any existing policies that may have encouraged banks to sever ties with certain customers, and it would require the Small Business Administration to review the practices of banks that underwrite or guarantee SBA loans, according to the draft.

When contacted by Reuters, the White House declined to comment on the report.

Back in January, President Donald Trump claimed that the CEOs of JPMorgan Chase and Bank of America had withheld services from conservative clients. Both banks denied that political affiliation plays a role in their business decisions.

These criticisms come amid broader Republican accusations that major banks are practicing so-called “woke capitalism” by cutting ties with industries including gun manufacturers, fossil fuel companies, and other businesses viewed as right-leaning.

The Trump administration has made financial reform a key part of its agenda, pushing to revise capital requirement rules and other banking regulations with the goal of spurring economic growth and promoting innovation.