‘Debanking’ is an obscene abuse of government power

“Debanking” seems like something out of paranoid dystopian fiction, but this horrific abuse of government power is already all too real.

We’re almost glad the Biden crew deployed it against then-former-President Donald Trump in 2021: That not only ensures he’s aware of this outrage; it points to how even the powerful are vulnerable.

It’s as simple as it is scary: Government regulators give a quiet nod to financial institutions that certain people or industries are to be “unpersoned,” and pretty soon they get the same treatment as North Korean tyrants, terrorists or drug kingpins: locked out of the financial system, which means social death. 

The victim gets turned away at other banks, all with no way to appeal what’s blandly painted as a “business decision.”

Just try life without any ready way to cash checks or pay bills, not even a debit card — nor, if you run a business, a line of credit to pay suppliers and meet payroll.

The abuse apparently began under President Barack Obama, deployed against disfavored businesses such as gun manufacturers on the laughable ground that they posed a “reputational risk”; it expanded under President Joe Biden to hit crypto and tech startups, as well as individuals whose opinions or political activity got labeled “dangerous.” 

Venture capitalist Marc Andreessen calls it a “privatized sanctions regime”; American victims apparently number in the thousands.

In the wake of the Jan. 6 Capitol riot, Trump was first personally dropped by Chase, then refused service by Bank of America.

And First Lady Melania Trump reports that she and her son Barron were dropped by their bank. 

The good news is that Donald Trump is signing executive orders to crack down on the abuse and will surely sign legislation to prevent it.

Banks have a duty to watch out for criminal abuse of their services, but forcing them to secretly enforce political insiders’ ideological agenda is frighteningly totalitarian.