Trump poised to pick fight with big banks over lending for small businesses

New York Post - Apr 11th, 2025
Open on New York Post

Jamie Dimon, Brian Moynihan, Jane Fraser, and other major bank CEOs face new pressures from President Donald Trump, who plans to push for increased lending to small businesses. The Trump administration aims to shift focus back to traditional commercial banking to stimulate economic growth, demanding that banks like JP Morgan, Bank of America, and Citigroup enhance their support for small enterprises. With small businesses comprising nearly half of the US economy, Trump's strategy seeks to rejuvenate this critical economic segment, moving away from the banks' recent emphasis on more lucrative global operations and financial services akin to hedge funds.

This strategic push signifies a potential shift in the regulatory environment, with Trump leveraging his position to influence banking practices. While bank CEOs have historically enjoyed a favorable rapport with Washington, Trump's assertive stance and reputation for being uncompromising could compel them to comply with his demands. As the economic landscape evolves post-COVID, and amidst inflationary pressures, this move could reshape the US banking sector, emphasizing small business lending as a cornerstone of economic policy. The implications extend to the broader financial industry, highlighting the delicate balance between regulatory expectations and the pursuit of profit in a competitive market.

Story submitted by Fairstory

RATING

5.0
Moderately Fair
Read with skepticism

The article presents a timely and relevant topic by exploring potential changes in banking practices under the Trump administration, specifically regarding small business lending. It effectively highlights the importance of small businesses to the economy and raises awareness of the relationship between big banks and government policy. However, the story's reliance on unnamed sources and speculative claims weakens its factual accuracy and source quality, limiting its ability to provide a comprehensive and balanced analysis.

While the article is generally clear and accessible, its use of informal language and provocative characterizations may detract from its professionalism and neutrality. The lack of diverse perspectives and direct confirmation from official sources further diminishes its impact and engagement potential.

Overall, the article could benefit from greater transparency, more authoritative sourcing, and a broader range of perspectives to enhance its credibility and influence. Despite these limitations, it addresses a topic of significant public interest and has the potential to spark discussions about economic policy and the role of financial institutions in supporting small businesses.

RATING DETAILS

6
Accuracy

The story makes several claims regarding the Trump administration's intentions to pressure big banks to increase lending to small businesses. While it cites unnamed sources close to the administration, these claims lack direct confirmation from official sources. The definition of small businesses, as having 500 or fewer employees, aligns with the U.S. Small Business Administration's criteria, adding some accuracy to the claim. However, the assertion that small businesses are responsible for nearly half of all economic activity requires verification from economic reports or the SBA.

The article's discussion of the shift in banking practices since the late 1990s is historically accurate, as deregulation did allow financial institutions to combine commercial banking with other financial operations. The claim about non-bank lenders filling the void in small business lending is plausible but needs data confirmation on their market share compared to traditional banks.

While the article accurately describes the "Too Big To Fail" status of major banks, its portrayal of the relationship dynamics between bank CEOs and Trump relies heavily on speculation and lacks direct evidence. Overall, the story's factual basis is mixed, with some claims verifiable and others needing more substantiation.

5
Balance

The story primarily presents the perspective of the Trump administration and its alleged plans to influence banking practices. It lacks input from the banks themselves, as representatives for Jamie Dimon, Brian Moynihan, and Jane Fraser are noted as having no comment. This omission creates an imbalance, as the banks' perspectives on the challenges and feasibility of increasing small business lending are not explored.

Moreover, the article does not include comments from economic experts or analysts who could provide a broader context or critique of the administration's approach. The focus on Trump's potential influence and the fear he instills in bank CEOs suggests a one-sided narrative, emphasizing political dynamics over economic or financial analysis.

To achieve better balance, the article could incorporate viewpoints from small business owners, economists, and regulatory experts to provide a more comprehensive understanding of the potential impacts of such a policy shift.

7
Clarity

The article is generally clear in its language and structure, making it relatively easy for readers to follow the narrative. It uses straightforward language to describe the potential policy shift and its implications for big banks and small businesses.

The story is logically organized, beginning with the main claim about Trump's intentions and then providing background on the banking industry's shift away from small business lending. The use of rhetorical questions, such as asking when Jamie Dimon last discussed traditional banking, adds clarity by emphasizing key points.

However, the article's reliance on speculative language, such as describing Trump as the 'Orange Man' and suggesting CEOs are 'deathly afraid,' may detract from its neutrality and clarity. These elements introduce a tone that could be perceived as biased or sensational, potentially affecting reader comprehension.

4
Source quality

The article relies on unnamed sources described as being close to the Trump administration, which raises questions about the credibility and reliability of the information. The lack of direct quotes or statements from identifiable officials or experts diminishes the authority of the claims made.

The absence of comments from the banks and the White House further weakens the source quality, as these would be primary stakeholders in the story. Without attribution to credible and authoritative sources, the article's reliance on speculation and anonymous insights undermines its reliability.

For improved source quality, the article should include statements from named officials, banking representatives, or economic analysts who can provide verifiable and authoritative insights into the situation.

3
Transparency

The article lacks transparency in its sourcing and methodology. It does not disclose the identity of the 'Trump insider' or provide any context about the source's credibility or proximity to decision-making within the administration. This lack of transparency makes it difficult for readers to assess the reliability of the claims.

Additionally, the article does not explain how the information was obtained or whether any attempts were made to verify the claims with official sources. The absence of disclosure regarding potential conflicts of interest or the author's background further obscures the basis of the reporting.

Overall, the article could benefit from greater transparency by providing more information about the sources and the process used to gather and verify the information presented.

Sources

  1. https://www.politico.com/news/2025/04/10/small-business-trump-tariffs-doge-economy-00282173
  2. https://acecomments.mu.nu/?post=413580
  3. https://www.youtube.com/watch?v=bAJn6cDqMrw
  4. http://acecomments.mu.nu/?post=369714http%3A%2F%2Facecomments.mu.nu%2F%3Fpost%3D369714
  5. https://www.sba.gov/article/2025/03/21/small-business-administration-announces-agency-wide-reorganization