Is pornography a risky business for banks?

J. P. Morgan Chase closes accounts of several porn actors, raising the question of the financial and reputational risks of the industry

There is no doubt that the porn industry in America today is big business. Some estimates state that porn-related businesses rake in over $13 billion a year, and it doesn’t appear as if that bubble will burst any time soon. With all of this money trading hands, several questions arise. First, where do the individuals who profit from these ventures, such as porn stars, put their money? Second, what kinds of risks are involved with dealing with these sorts of funds?

The answer to the first question is that at least some of the biggest stars in the adult entertainment industry kept their money with J. P. Morgan Chase & Co. That is, until recently. Several porn actors received notice last week that their accounts were being closed, which brings us back to question number two above.

Senior Editor and Community Manager

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Rich Steeves

Richard P. Steeves is Senior Editor and Community Manager of InsideCounsel magazine, where he covers the intellectual property and compliance beats. Rich earned a B.A....

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