The news: Citigroup has accepted President Donald Trump's money, creating a new trust held by his son Eric Trump for some of the president's assets, per Bloomberg.
Zooming out: This banking relationship provides Trump’s assets with a new home after he accused competitors JPMorgan and Bank of America of debanking him and other conservatives.
Citi's decision also represents a major US lender taking on a client whose finances and business dealings are politically sensitive and historically fraught with issues, like allegedly misleading Deutsche Bank, per Bloomberg. The move, however, aligns with CEO Jane Fraser's multiyear strategy to build up Citigroup's wealth business as a pillar for growth.
The background: Citigroup’s decision is bold, especially given the intense scrutiny Citi faced from federal financial regulators. In 2024, former Acting Comptroller of the Currency Michael Hsu said Citi has “long-standing deficiencies” in risk management and data governance. Taking on high-profile, politically exposed investments like President Trump’s assets would traditionally invite intensified compliance oversight.
Our take: Citi is calculating that the Trump family’s potential investments outweigh the reputational risks—and potential blowback from consumers.
We will likely see more movement in this direction, as banks fear being labeled as debanking under this administration.