Large banks would lose Fed emergency lending if they turn away legal businesses

What does this do?

HR 987 would require banks with more than $50 billion in assets, credit unions, and payment card networks to serve any customer whose business is legal under federal law. Banks that deny service must provide a written reason based on specific, measurable financial risk standards, not opinions about a customer's industry or politics. Payment card networks like Visa or Mastercard and the Automated Clearing House network would also be prohibited from blocking legally operating businesses on political or reputational grounds.

Who does it affect?

The bill primarily affects the largest banks, credit unions, and major payment card networks. Businesses in industries such as firearms dealers and fossil fuel companies that have reportedly struggled to access banking services would be most directly affected.

Why does it matter?

Banks that violate the rules could lose access to the Federal Reserve's discount window, a key source of short-term emergency lending. Wrongly denied customers could sue directly in federal court and, if successful, collect three times their actual damages plus legal fees, while payment networks face financial penalties for violations.

What does it cost, and who pays?

• Payment networks face financial penalties
• Triple damages plus legal fees if plaintiff wins
• Banks risk losing Fed discount window access