Unlock the White House Watch newsletter for free
Your guide to what Trump’s second term means for Washington, business and the world
Donald Trump has sued JPMorgan Chase and its chief executive Jamie Dimon, seeking at least $5bn in damages over claims the biggest US bank unfairly closed his accounts for political reasons.
The lawsuit is a significant escalation in a simmering dispute between Trump and the Wall Street group around the question of whether he and others were denied banking access for political reasons.
The US president and several Trump-branded businesses sued JPMorgan in a Miami-Dade County state court on Thursday. They accused the lender of distancing itself from Trump and his affiliated companies after he left office in 2021 as a result of “unsubstantiated, ‘woke’ beliefs”.
The complaint alleges the bank’s “unilateral decision came about as a result of political and social motivations” to separate itself from “President Trump and his conservative political views”.
JPMorgan debanked the accounts “because it believed that the political tide at the moment favoured doing so”, the complaint claimed.
Trump alleged JPMorgan notified the plaintiffs on February 19 2021 that several of their accounts would be closed in two months, causing them financial and reputational harm.
The lawsuit also alleges Dimon directed JPMorgan to include Trump and his companies on a “blacklist” that is “comprised of individuals and entities that have a history of malfeasant acts and are otherwise non-compliant” with bank rules.
JPMorgan on Thursday said: “While we regret President Trump has sued us, we believe the suit has no merit. We respect the president’s right to sue us and our right to defend ourselves — that’s what courts are for.”
The bank added it does not close accounts for political or religious reasons but because they “create legal or regulatory risk for the company”, and that it often does so because of rules and regulatory expectations.
The lawsuit comes a day after Dimon praised Trump at the World Economic Forum in Davos, saying the US president was right to point out “weaknesses” in Nato and within Europe and commended his efforts to rebalance America’s trade partnerships.
But JPMorgan’s CEO said he was “not a tariff guy in general” and warned Trump’s plan to cap interest rates on credit cards would be an “economic disaster”.
Trump has attacked US banks over their reluctance to offer him banking services in the aftermath of his departure from the White House in 2021. JPMorgan disclosed in November last year that the government was investigating whether it provided fair banking access to its customers.
JPMorgan said: “We have been asking both this administration and prior administrations to change the rules and regulations that put us in this position, and we support the administration’s efforts to prevent the weaponisation of the banking sector.”
Lenders consistently say they do not deny banking access on political grounds, but note the added oversight required for certain customers or suspicious activity can lead to relationships being terminated. This can include so-called politically exposed people or individuals with activities in controversial industries such as marijuana.
Banks have to conduct additional checks when signing on PEPs. These individuals are considered more susceptible to money laundering or terrorist financing because of their profile and connections.
This is the latest lawsuit unleashed by Trump in his second presidency, as he pursues legal broadsides against his perceived opponents in his personal capacity as well as, critics say, via the Department of Justice. The DoJ has rejected accusations of political interference.
Trump has also targeted media companies, suing the BBC last month for $10bn over a misleading edit of his speech in a documentary. On Thursday, he threatened more legal action against the New York Times after it published a poll showing his weak approval ratings.
Read the full article here