South Africa and debanking

This debanking battle isn’t unique to the US. In South Africa, Dr Iqbal Survé, a prominent businessman and chairman of the Sekunjalo Group, is waging a similar fight against financial institutions he accuses of targeting his companies for political and racial reasons.

Survé, who is also the chairman of Independent Media, one of the country’s largest news outfits, claims banks have unjustly closed accounts linked to his businesses, threatening thousands of jobs and stifling voices that challenge the establishment. His struggle mirrors the Trump Organisation’s, highlighting a global debate over banking access and political influence.

According to CNN and CNBC, the bank provided no recourse, remedy, or alternative, leaving the Trump entities struggling to manage their finances. The named plaintiffs include the Donald J. Trump Revocable Trust, DJT Holdings, DJT Holdings Managing Member, DTTM Operations, and Eric Trump, son of former US President Donald Trump.

The Trump Organisation contends that Capital One’s decision stemmed from “political and social” factors, specifically a desire to distance itself from President Trump and his conservative stance following the end of his first term in January 2021.

“Plaintiffs have reason to believe that Capital One’s unilateral decision came about as a result of political and social motivations and Capital One’s unsubstantiated, ‘woke’ beliefs,” the lawsuit states. It further alleges that the bank’s actions are part of a wider industry pattern of “de-banking” consumers due to conflicting political views, describing it as a “systemic, subversive industry practice” designed to pressure the public into shifting their ideologies.

The account closures followed the January 6, 2021 riot at the US Capitol by Trump supporters, an incident preceded by the former president’s repeated false claims of winning the 2020 election. Other financial institutions, including Deutsche Bank and Signature Bank, also cut ties with Trump in early 2021.

#righttobank

Trump organisation sues Capital One over account closures and alleges political de-banking