In a high-profile legal clash, former US President Donald Trump has filed a $5 billion lawsuit against America’s largest bank, JPMorgan Chase. The lawsuit, which also names the bank’s CEO Jamie Dimon, alleges that the bank illegally closed Trump’s accounts for political reasons, causing “considerable financial and reputational harm” to the former president and his businesses.
The lawsuit, filed in Florida, claims that JPMorgan’s decision to close Trump’s accounts was driven by “unsubstantiated, ‘woke’ beliefs” that the bank needed to distance itself from the former president and his conservative political views. The filing also accuses the bank of “trade libel” by placing Trump’s name and that of his businesses “and/or family” on a “blacklist” that was shared with other banks.
JPMorgan, however, has refuted the allegations, stating that the lawsuit “has no merit.” The bank maintains that it does not close accounts for political or religious reasons, but rather due to “legal or regulatory risk.” In a statement, the bank said it often has to make difficult decisions to close accounts, which are prompted by “rules and regulatory expectations.”
The lawsuit is the latest clash between Trump and Dimon, who has led JPMorgan for two decades. In recent weeks, Dimon has spoken out against the administration’s proposals to cap credit cards and has criticized its immigration policy and stance towards the Federal Reserve.
The debanking issue, or the process of closing accounts, has been a priority for Trump, who has publicly taken JPMorgan and other banks to task for the practice. Last month, regulators said they had found nine of the country’s biggest banks made “inappropriate distinctions” among customers based on their business activities, with sectors such as oil and gas, private prisons, and adult entertainment facing restricted access.
The high-stakes lawsuit underscores the ongoing tension between the former president and the banking industry, as well as the broader debate around the role of financial institutions in shaping political discourse and the boundaries of their decision-making processes.
