U.S. President Donald Trump said his administration would look into banks — singling out Wells Fargo — over payments and debt treatment after the Los Angeles wildfires, marking the latest friction with the banking industry.
The 2025 Palisades Fire in Los Angeles and Eaton Fire in Altadena killed 22 people, destroyed some 12,000 homes and caused over $50 billion in property damage.
“Wells Fargo, in particular, has been very difficult to deal with,” Trump said in a post on Truth Social late on Thursday. “The Banks must treat those people, who so horribly lost their Homes in this tragic fire, very fairly and well.”
A spokesperson for Wells Fargo declined to comment.
Trump’s second term has fueled friction with Wall Street, as allegations of “debanking” and exchanges over credit card rate caps have strained ties with executives at big banks despite a broader deregulatory push favoring the sector.
It was not clear how Trump would look into banks or if his administration would take any potential action. The banks have said they provided forbearance to borrowers affected by the wildfires and gave financial assistance to help in the relief efforts.
The president made the post after meeting with Los Angeles Mayor Karen Bass and Los Angeles County Supervisor Kathryn Barger.
In a joint statement, Bass and Barger said they had “a very positive discussion about FEMA and other rebuilding funds, as well as the support of the President to continue joining us in pressuring the insurance companies to pay what they owe — and for the big banks to step up to ease the financial pressure on L.A. families.”
Relief for Those Affected
California Gov. Gavin Newsom announced in January 2025 that five major lenders — JPMorgan Chase, Wells Fargo, Bank of America, U.S. Bank and Citigroup — would grant 90-day mortgage forbearance to homeowners in Los Angeles and Ventura fire zones. The relief included paused credit reporting and potential for extended aid.
Later, it was legally required that a lender provide up to 12 months of mortgage forbearance in the state to borrowers facing financial hardship as a result of the wildfire disaster.
Forbearance allows borrowers to temporarily pause repayments on their loans or pay lower amounts. Borrowers often turn to banks for such aid to help ease the cost of rebuilding. However, the strain on the industry’s profitability from the unpaid loans can also prompt lenders to retreat from markets prone to natural catastrophes.
During his second term, the president has repeatedly criticized JPMorgan Chase and Bank of America, accusing them of denying banking services to conservative clients, a practice known as debanking. Both banks have denied any banking decisions based on politics.
Trump also stirred up industry opposition by demanding a 10% cap on credit card interest rates, which JPMorgan CEO Jamie Dimon called an “economic disaster” as it would curb access to credit for many consumers.
Reporting by Ismail Shakil, Writing by Christian Martinez; Additional reporting by Saeed Azhar; Editing by Chris Sanders, Andrea Ricci and Nia Williams
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