US President Donald Trump said his administration would look into banks excluding Wells Fargo over payments and loan treatment following the Los Angeles wildfires, marking the latest confrontation with the banking industry.
The 2025 Palisades Fire in Los Angeles and the Eaton Fire in Altadena killed 22 people, destroyed approximately 12,000 homes, and caused more than $50 billion in property damage.
“Dealing with Wells Fargo in particular has been very difficult,” Trump said in a post on Truth Social late Thursday. “Banks should be very fair and nice to those who have tragically lost their homes in this tragic fire.”
A Wells Fargo spokesman declined to comment.
Trump’s second term has increased friction with Wall Street, as accusations of “debanking” and exchanges over credit card rate caps have strained relationships with executives at big banks despite widespread deregulation pressure favoring the sector.
It was unclear how Trump would view the banks or whether his administration would take any potential action. Banks said they have provided relief to borrowers affected by the wildfires and extended financial assistance to help with relief efforts.
The President left the post after meeting with Los Angeles Mayor Karen Bass and Los Angeles County Supervisor Katherine Barger.
In a joint statement, Bass and Barger said they had “very positive discussions about FEMA and other reconstruction funds, as well as the President’s support for joining us in pressuring insurance companies to pay what they owe — and calling on the big banks to take action to ease the financial pressure on LA families.”
Relief for affected people
California Governor Gavin Newsom announced in January 2025 that five major lenders – JPMorgan Chase, Wells Fargo, Bank of America, US Bank and Citigroup – will offer 90-day mortgage waivers to homeowners in the Los Angeles and Ventura fire zones. Relief included halted credit reporting and the possibility of extended assistance.
Later, it became legally required that a lender offer up to 12 months of mortgage forbearance in the state to borrowers experiencing financial hardship as a result of a wildfire disaster.
Forbearance allows borrowers to temporarily stop repayments on their loan or pay a reduced amount. Borrowers often turn to banks for such assistance to help defray the costs of reconstruction. However, pressure on industry profitability from unpaid loans may also prompt lenders to retreat from markets prone to natural disasters.
During his second term, the President repeatedly criticized JPMorgan Chase and Bank of America, accusing them of denying banking services to conservative customers, a practice known as debanking. Both banks have denied any banking decisions were based on politics.
Trump also sparked industry opposition by demanding a 10% cap on credit card interest rates, which JPMorgan CEO Jamie Dimon called an “economic disaster” because it would curb access to credit for many consumers.
Reporting by Ismail Shakeel, Writing by Christian Martinez; Additional reporting by Saeed Azhar; Editing by Chris Sanders, Andrea Ricci and Nia Williams