Trump Sues JPMorgan, Alleging Politically Motivated ‘Debanking’

President Donald Trump has sued JPMorgan Chase & Co. and its chief executive officer, Jamie Dimon, seeking at least $5 billion in damages over allegations that the bank terminated his accounts and those of his businesses for political reasons.

 

The complaint, filed on Thursday in Miami-Dade County state court, accuses JPMorgan of trade libel and breach of the implied covenant of good faith and fair dealing. It also alleges that Dimon violated Florida’s deceptive and unfair trade practices law. JPMorgan said it does not close accounts on the basis of political or religious views.

 

Trump has repeatedly singled out JPMorgan in his broader campaign against what he describes as the ideological “debanking” of individuals and businesses. According to the complaint, the bank closed accounts held by Trump and his business entities roughly seven weeks after the January 6, 2021 assault on the US Capitol by his supporters. At the time, Trump was no longer in office and his political influence was diminished.

 

The lawsuit was filed by Trump along with several Trump-affiliated business entities. It claims JPMorgan, the largest bank in the United States, terminated the accounts “without warning or provocation”, causing substantial financial and reputational harm. The complaint, reviewed by Bloomberg, was not immediately available in court records.

 

Since returning to office for a second term last year, Trump has pursued what he characterises as accountability for perceived political adversaries. His administration has taken actions against law firms, universities, corporations, media organisations and Democratic officials whom he views as ideologically opposed.

 

According to the filing, JPMorgan acted out of “woke” beliefs and sought to distance itself from Trump and his conservative political views. “In essence, JPMC debanked plaintiffs’ accounts because it believed that the political tide at the moment favoured doing so,” the complaint states.

 

JPMorgan said in a statement that the lawsuit is without merit.

 

Regulatory expectations

 

“We do close accounts because they create legal or regulatory risk for the company,” the New York-based bank said. “We regret having to do so, but rules and regulatory expectations often lead us to that decision. We have asked both this administration and prior administrations to change the regulations that put us in this position, and we support efforts to prevent the weaponisation of the banking sector.”

 

The bank disclosed in November that it is facing reviews, investigations and legal proceedings linked to the Trump administration’s crackdown on debanking practices. Separately, the Trump Organization has already filed a similar lawsuit against Capital One Financial Corp.

 

Trump’s lawyers argue that Florida law prohibits financial institutions from terminating banking relationships on the basis of political opinions, speech or affiliations. Beyond account closures, the complaint alleges that JPMorgan placed Trump, the Trump Organization and family members on a “blacklist” preventing access to wealth management services.

 

“Debanking is a matter of public interest and significant importance to all consumers and businesses in the United States,” the complaint states, adding that JPMorgan is a “central actor” in what it describes as a troubling national trend.

 

Speaking to reporters aboard Air Force One on Thursday, Trump said: “You shouldn’t be debanked. It’s so wrong. I don’t know what their excuse would be -- maybe their excuse would be the regulators.”

 

Trump began publicly criticising major US banks over debanking soon after returning to office. A year ago, while addressing the World Economic Forum in Davos virtually, he criticised Bank of America chief executive Brian Moynihan and named JPMorgan during the session. He has raised the issue repeatedly since, including in August, when he claimed JPMorgan asked him to close his accounts and Bank of America refused to accept a deposit of more than $1 billion.

 

An executive order issued on August 7 directed federal regulators to identify financial institutions that may have engaged in unlawful debanking practices.

 

The lawsuit against JPMorgan was filed by Alejandro Brito, a Coral Gables-based attorney who also represents Trump in the Capital One case. Brito has additionally filed defamation lawsuits on Trump’s behalf against the New York Times, the Wall Street Journal and, most recently, the British Broadcasting Corporation, collectively seeking $35 billion in damages. All the organisations deny wrongdoing and are contesting the claims.

 

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