Secret workaround exposed as Trump allies eye new slush fund plan: report

The Trump administration has considered using settlements from a Justice Department investigation into major banks' account closures to fund compensation for Jan. 6 rioters, according to sources briefed on the matter.

The Justice Department is investigating whether some of America's largest banks closed accounts of Jan. 6 defendants and other conservatives for political reasons — and President Donald Trump's allies are already eyeing potential settlements from that probe as a way to compensate those the president claims were unfairly targeted, reported CNN.

People briefed on the matter say some of the president's allies have suggested to administration officials that any money flowing from the so-called debanking investigation could be channeled toward Trump supporters who suffered financial harm because of their involvement in the Capitol attack. The idea was among several funding mechanisms discussed in recent months.

As many as 10 banks, including Bank of America, Wells Fargo and JPMorgan Chase, are under scrutiny. Subpoenas have been issued by prosecutors in the office of U.S. Attorney Jeanine Pirro, examining whether the banks discriminated against conservatives and industries that fell out of favor during the Biden administration. Prosecutors are looking at whether the banks' conduct violated the Financial Institutions Reform, Recovery and Enforcement Act, which allows financial penalties for fraud and other violations.

The push comes after acting Attorney General Todd Blanche abandoned plans for a nearly $1.8 billion "anti-weaponization fund" backed by the U.S. Treasury, which drew bipartisan opposition. Trump has insisted he has not given up on finding a way to compensate supporters he believes were unjustly treated by the government, and aides say the goal remains the same even if the vehicle changes.

A federal judge issued a court order indefinitely blocking the so-called anti-weaponization fund because Blanche and other top DOJ officials have not stated under oath that the plans are defunct.

Banking regulators have already begun adjusting their practices, with new guidelines removing so-called "reputation risk" as a factor in assessing banking behavior — a standard critics of the Trump administration say was used to justify closing conservative accounts.

All three banks named in the investigation declined to comment, and a spokesman for Pirro's office also declined to respond.