Former U.S. President Donald Trump has filed a $5 billion lawsuit against JPMorgan Chase and its CEO, Jamie Dimon, alleging the bank closed his accounts to further a political agenda. The lawsuit, lodged in a Florida court, accuses JPMorgan Chase of violating its own policies by singling out Trump, driven by political motives. JPMorgan Chase is the largest bank in the U.S., offering a wide range of financial services to individuals and institutions globally. Jamie Dimon has served as its CEO for two decades, establishing himself as a prominent figure in the corporate world.
JPMorgan Chase has denied these allegations, stating it does not close accounts for political or religious reasons. The bank has publicly stated that it believes the lawsuit is without merit and intends to defend itself vigorously. Trump has also criticised other lenders, including Bank of America, with similar ‘debanking’ allegations. Furthermore, Trump recently advocated for a 10% cap on credit card interest rates, a move Dimon argued would restrict credit access for many consumers and potentially trigger an ‘economic disaster’.
The lawsuit also accuses Dimon of orchestrating a ‘blacklist’ to dissuade other banks from doing business with the Trump Organization, Trump family members, and Trump himself. Trump claims this has caused extensive reputational harm, forcing him to seek new financial institutions. JPMorgan Chase maintains that it closes accounts that pose legal or regulatory risks to the company, noting that regulatory expectations often necessitate such actions.
Shares of JPMorgan Chase closed up 0.5% on Thursday. Capital One Financial is also facing a similar lawsuit filed by Trump plaintiffs. The White House has referred requests for comment to Trump’s private lawyer. Industry bodies have urged regulators to update anti-money laundering regulations, which at times forces banks to close suspicious accounts without explanation.
