David Freeman Comments on OCC Debanking Measures in The Banker

Arnold & Porter Financial Services partner David F. Freeman was recently quoted in The Banker article, “Tougher Debanking Rules Will Have ‘Big Consequences’ for US Banks,” discussing the Office of the Comptroller of the Currency’s (OCC) implementation of stricter oversight following President Donald Trump’s executive order addressing the alleged debanking of politically conservative clients.

David noted that the OCC’s increased action will impose new compliance burdens on U.S. banks.

“Going forward banks will have to be much more careful in what clients they refuse to bank, and they will have to document things a lot more on an individual, case-by-case basis,” he said.

He also emphasized the potential retroactive impacts, noting that banks may want to review past decisions “in some type of privileged way” using legal counsel to assess potential regulatory exposure.

David added that banks have historically avoided certain industries due to money laundering concerns—a practice that may no longer be viable.

“That will be much harder under the OCC measures,” he said. “I don’t think what the OCC proposes is consistent with free markets or with the rule of law.”

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