Trump says he will look into US banks' treatment of debts after Los Angeles wildfires

WASHINGTON- U.S. President Donald Trump said on Thursday his administration will be looking into banks, singling out Wells Fargo WFC.N, regarding payments and the treatment of debts in the aftermath of the Los Angeles wildfires, after he met with Los Angeles Mayor Karen Bass and Los Angeles County Supervisor Kathryn Barger.

"Wells Fargo, in particular, has been very difficult to deal with," Trump said in a post on Truth Social. "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.

In a joint statement posted to Bass' X account on Wednesday, 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."

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.

California Governor Gavin Newsom had announced in January 2025 that five major lenders - JPMorgan Chase JPM.N, Wells Fargo, Bank of America BAC.N, U.S. Bank USB.N and Citigroup C.N - 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.

TRUMP 2.0 AND BANKS

Trump’s second term has fueled friction with Wall Street, as "fair access" mandates and exchanges over credit card rate caps have strained ties with executives at big banks despite a broader deregulatory push favoring the sector.

The president has repeatedly criticized JPMorgan Chase and Bank of America, accusing them of denying banking services to conservative clients. However, both banks have denied any banking decisions based on politics.

Trump stirred up industry opposition by demanding a 10% cap on credit card interest rates, which JPMorgan's CEO Jamie Dimon called an "economic disaster" as it would curb access to credit for many consumers.

Wells Fargo was also released from its seven-year-long $1.95 trillion cap on its assets in June 2025, allowing the lender to grow in areas CEO Charlie Scharf wanted it to, such as credit cards, wealth management and commercial banking.

[Reporting by Ismail Shakil, Writing by Christian Martinez; Additional reporting by Saeed Azhar; Editing by Chris Sanders and Andrea Ricci/Reuters