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Sen. Scott says his committee passed measure to curb "debanking," compares practice to redlining
Summary
Sen. Tim Scott told Fox Business his committee passed a partisan version of a bill he called the FIRM Act to address what he called politically motivated 'debanking,' likening current practices to historical redlining and urging bipartisan enactment.
Sen. Tim Scott said his Senate committee approved legislation aimed at addressing what he described as politically motivated "debanking" of businesses and individuals. "We called it redlining then ... now it's whether we like your business or not," Scott said, arguing that banks and regulators should make decisions based on creditworthiness rather than political considerations.
Scott said the committee passed his reputational-risk/debanking measure in committee on a partisan vote and urged bipartisan support during the lame-duck session. "We should make decisions based on credit scores. Will they pay it back? Not on whether we like you or not," he said.
Scott alleged banks had removed access for certain clients — including clients tied to former President Trump and parts of the oil and gas industry — and presented the FIRM Act as a legislative fix. He also cited steps by the Office of the Comptroller of the Currency and other agencies as complementary actions, but said he wanted the protections written into law.
Context: Scott framed the claim as both a civil-rights and economic issue, comparing modern debanking to historical redlining and saying it is "immoral" and "unethical." The interview supplied the committee-level vote and Scott's account; no committee minutes or subsequent floor action were presented on air.
