In a significant move, several major UK-based banks, including Barclays and HSBC, have decided to distance themselves from former US President Donald Trump following the violent storming of the US Capitol earlier this year. The decision adds to a growing list of financial institutions cutting ties with Trump and his business ventures.
Why Are Banks Cutting Ties?
The unrest on 6 January, which saw Trump supporters breach the Capitol building, prompted widespread condemnation and led to Trump's second impeachment. Financial institutions have since faced pressure to reassess their relationships with the former president.
Barclays and HSBC are among the latest to join Bank of America and JP Morgan in restricting financial services linked to Trump’s businesses. The banks have reportedly closed accounts and halted lending, citing reputational risks and compliance concerns.
Impact on Trump’s Business Empire
Trump’s real estate and hospitality ventures have long relied on financing from major banks. The withdrawal of support from UK and US institutions could complicate his ability to secure loans and manage existing debts.
Experts suggest that the financial backlash may force Trump to seek alternative funding sources, including private investors or foreign entities, though this could invite further scrutiny.
Broader Financial Sector Reaction
The banking industry’s response reflects a broader trend of corporate accountability in the wake of political controversies. Other sectors, including tech and media, have also taken steps to limit Trump’s influence following the Capitol riots.
As the fallout continues, the long-term financial and political consequences for Trump remain uncertain. However, the decisions by Barclays, HSBC, and others signal a clear shift in how institutions are willing to engage with controversial figures.
