*

Trump says, without evidence, that banks refused his

deposits

*

White House readying order on banks' alleged debanking

practices

*

JPMorgan ( JPM ) denies closing accounts for political reasons

(Updates with analyst comment in paragraph 16, shares in

paragraph 17 and industry group comment in paragraphs 18-19.)

By Andrea Shalal and Pete Schroeder

WASHINGTON, Aug 5 (Reuters) - U.S. President Donald

Trump on Tuesday said he believes that banks discriminate

against him and his supporters, adding that Bank of America ( BAC ) and

JPMorgan Chase ( JPM ) had previously refused to accept his deposits.

"They totally discriminate against, I think, me maybe even

more, but they discriminate against many conservatives," he told

CNBC in an interview. "I think the word might be Trump

supporters more than conservatives."

Trump made the comments when asked about a report by the

Wall Street Journal that said he planned to punish banks that

discriminated against conservatives, but did not address the

order specifically.

The order instructs regulators to review banks for

"politicized or unlawful debanking" practices, according to a

draft reviewed by Reuters.

"Well, they did discriminate," Trump said of actions taken

by JPMorgan Chase ( JPM ) after his first term in office. "I had

hundreds of millions, I had many, many accounts loaded up with

cash ... and they told me, 'I'm sorry sir, we can't have you.

You have 20 days to get out.'"

Trump said, without providing evidence, that he believed

that the banks' refusal to take his deposits indicated that the

administration of former President Joe Biden had encouraged

banking regulators to "destroy Trump."

Trump said he subsequently tried to deposit funds with Bank

of America ( BAC ) and was also refused, and eventually split the cash

among a number of smaller banks.

"The banks discriminated against me very badly," he said.

In a statement, JPMorgan ( JPM ) did not address the president's

specific claim that it had discriminated against him.

"We don't close accounts for political reasons, and we agree

with President Trump that regulatory change is desperately

needed," JPMorgan ( JPM ) said. "We commend the White House for

addressing this issue and look forward to working with them to

get this right."

Bank of America ( BAC ) declined to comment.

The Wall Street Journal reported late Monday that the

expected executive order would instruct regulators to

investigate whether any financial institutions breach the Equal

Credit Opportunity Act, antitrust laws or consumer financial

protection laws by dropping customers for political reasons.

It said the order could be signed as early as this week,

authorizing monetary penalties, consent decrees or other

disciplinary measures against violators.

The White House had no immediate comment on the reported

order.

Trump in January said the CEOs of JPMorgan Chase ( JPM ) and Bank of

America ( BAC ) denied services to conservatives. At the time, the two

banks denied making banking decisions based on politics.

"This seems to be rhetoric that will likely be forgotten by

lunchtime," said David Wagner, head of equities at Aptus Capital

Advisors. "I don't see any material impact on banks, as there

are many other drivers that will ultimately presage performance

for banks, such as deregulation."

JPMorgan ( JPM ) and Bank of America ( BAC ) shares both fell about 1%,

in line with a decline for the broader S&P Bank index.

Banks have consistently argued that any complaints about

"debanking" should be aimed at regulators, as they argue onerous

rules and bank supervisors policing firms can discourage them

from engaging in certain activities.

"The heart of the problem is regulatory overreach and

supervisory discretion," the Bank Policy Institute, an industry

group, said in a statement.

"The banking agencies have already taken steps to

address issues like reputational risk, and we're hopeful that

any forthcoming executive order will reinforce this progress by

directing regulators to confront the flawed regulatory framework

that gave rise to these concerns in the first place."