For any corporate executives speculating about what the next four years might entail, a revealing moment at Davos this week should provide insight into the business landscape under Trump 2.0.
President Donald Trump’s keynote address—delivered via video conference from Washington—naturally drew a large audience. However, according to Lauren Hirsch of The New York Times, it wasn’t Trump’s plans for lower corporate taxes or tariffs that dominated the post-speech discussions.
Instead, the focus was on Brian Moynihan, the CEO of Bank of America, who, despite expecting a routine discussion, unexpectedly found himself in Trump’s direct line of fire. The moment served as a stark warning to corporate leaders: the administration would not tolerate “woke” ideology within the federal government, and businesses should take heed as well.
During a Q&A session, Trump initially spoke about his economic plans before abruptly turning his attention to Moynihan.
“You’ve done a fantastic job, but I hope you start opening your bank to conservatives, because many conservatives complain that the banks are not allowing them to do business within the bank,” Trump stated. “You and Jamie and everybody… What you’re doing is wrong.”
Trump’s remarks referred to allegations that major banks, including Bank of America and JPMorgan Chase (led by Jamie Dimon), have been “debanking” conservative and religious groups due to political biases.
Both banks have consistently denied these claims, which gained traction last spring when over a dozen state auditors and treasurers issued an open letter to Moynihan, citing isolated incidents where right-wing or religious organizations’ accounts were closed. Bank of America previously stated these closures were unrelated to political or religious affiliations.
Bill Halldin, a spokesperson for Bank of America, reaffirmed on Thursday that the bank serves 70 million clients, including conservatives, and does not impose a “political litmus test.” Similarly, JPMorgan spokesperson Patricia Wexler stated: “We have never and would never close an account for political reasons, full stop.”
The Message Behind the Rebuke
Trump’s criticism of Moynihan wasn’t merely about standing up for a handful of affected organizations. Instead, it was a clear message to corporate leaders worldwide that any perceived offense—real or imagined—against Trump’s base would not be overlooked.
This represents a dramatic departure for the Republican Party, which has traditionally favored a hands-off approach to corporate regulation. For decades, conservative economic policy has resisted government interference in business affairs, whether through federal regulations or tax policies.
Bank of AmericaHowever, Trump’s strategy intertwines rewards and penalties: businesses may enjoy tax cuts, but they will also be expected to align with the administration’s ideological stance.
The controversy over “debanking” ties into a broader sentiment among some conservatives who believe they are being marginalized by a progressive corporate agenda. A series of perceived slights has evolved into an active campaign—first on social media and now endorsed at the federal level—against diversity, equity, and inclusion (DEI) initiatives.
The backlash against DEI initiatives was significantly amplified in 2023 when Bud Light partnered with a transgender influencer for a single sponsored social media post.
Conservative influencers and media outlets escalated the situation, portraying it as a symbol of “woke” culture infiltrating even mainstream brands. The controversy resonated widely because it wasn’t just associated with progressive enclaves—it was Budweiser, a long-established symbol of traditional Americana.
Even as Bud Light attempted to distance itself from the controversy, consumer backlash was severe, leading to a loss of over $1 billion in sales within a year.
Since then, numerous brands—including Walmart, Ford, and Target—have been accused of scaling back their DEI programs in response to conservative pressure. However, many of these claims are exaggerated, as companies like McDonald’s have largely adjusted their messaging rather than making substantial operational changes.
With Trump’s return to the presidency, the DEI backlash has moved beyond online activism to official government policy. This week, Trump signed executive orders rolling back federal DEI programs and directing government agencies to scrutinize DEI efforts within publicly traded companies.
The immediate impact on employment remains uncertain, but some employees have already been placed on administrative leave. Rob Shriver, former acting head of the Office of Personnel Management, told NPR that the policy’s sweeping nature could affect “potentially very large numbers of people.”
Corporate Resistance
Despite the growing pressure, not all companies are willing to retreat on DEI initiatives.
On Thursday, Costco shareholders overwhelmingly rejected a proposal from a conservative think tank that sought to force the retailer to quantify the risks associated with maintaining DEI initiatives.
Similarly, Apple dismissed a comparable proposal earlier this month. Even JPMorgan Chase—despite its central role in the “debanking” debate—appeared to push back against activist demands. When asked by CNBC about pressure to abandon DEI initiatives, Dimon responded resolutely: “Bring them on.”
