Former President Donald Trump has brought a lawsuit against JPMorgan Chase, the largest banking institution in the United States, and its chief executive officer, Jamie Dimon. The legal action, filed in state court in Florida, demands $5 billion in damages and alleges that JPMorgan unjustly discontinued its banking relationship with Trump and his affiliated entities during early 2021 based on political considerations.
The complaint details that in February 2021, JPMorgan informed Trump and his various enterprises that their banking accounts would be closed, providing a notice period of 60 days prior to executing the closures. Beyond the account terminations, the suit claims that Trump, his family members, and connected businesses were effectively placed on a "blacklist" by JPMorgan. This blacklist purportedly prevented them from establishing wealth management accounts under any title associated with their names or operations.
According to the suit, the authorization for this blacklisting came directly from CEO Jamie Dimon. It further asserts that this designation led to other financial institutions refraining from conducting business with Trump and other plaintiffs involved in the case.
The Biden legal confrontation marks just the latest chapter among numerous suits Trump has filed targeting critics and perceived adversaries, frequently seeking substantial financial recompense. Past actions have included litigation against major media outlets such as CBS, The New York Times, The Wall Street Journal, and the BBC.
The timing of the suit is notable, as it emerged shortly after Jamie Dimon publicly stated at the World Economic Forum in Davos that a proposal by Trump to impose a 10% cap on credit card interest rates would result in an "economic disaster." Dimon cautioned that such a cap would limit credit access for numerous American households.
Within the complaint, Trump's legal team argues that JPMorgan did not furnish any explicit reasons for terminating the banking relationships. They contend that the plaintiffs have since become aware that the closures were driven by political discrimination against Trump, the Trump Organization, its related enterprises, and members of the Trump family.
Furthermore, the lawsuit mentions that Trump personally reached out to Dimon concerning the impending account closures. It claims that Dimon acknowledged the inquiry and promised to follow up to resolve the issue but failed to do so ultimately.
In response, a JPMorgan Chase spokesperson, Trish Wexler, characterized the lawsuit as lacking merit and confirmed the bank's intention to challenge it vigorously in court. Wexler stated, "While we regret President Trump has sued us, we believe the suit has no merit. We respect the President's right to take legal action and our right to defend ourselves - that is what the judicial process is for."
Wexler emphasized that the bank does not close accounts based on political or religious beliefs. Instead, closures occur due to legal or regulatory risks posed to the institution. "We regret having to close accounts, but often rules and regulatory expectations necessitate such actions," she explained. The spokesperson also highlighted the bank's advocacy for rule and regulatory reforms to prevent the politicization of banking services.
Contrarily, Trump's lawsuit alleges that JPMorgan Chase has a documented pattern of terminating relationships with entities and individuals holding conservative political views. These claims align with Trump's previous assertions that major banks like JPMorgan and Bank of America have disallowed his business, particularly following the conclusion of his first term in office. Trump has continued criticizing what he terms "debanking," particularly during his second presidential term.
During the World Economic Forum last year in Davos, mere days after beginning his second presidential term, Trump publicly rebuked Bank of America CEO Brian Moynihan over alleged discriminatory banking practices. He urged banks to "open their doors to conservatives," accusing financial leaders including Jamie Dimon of wrongdoing.
In response, Bank of America representatives denied any political litmus test for client acceptance, highlighting their service to approximately 70 million customers, including conservatives.
In August, Trump enacted an executive order aimed at penalizing banks that restrict services based on clients' political or religious affiliations. Despite this, it is important to note that American consumers do not hold a legal entitlement to bank accounts, and banks commonly refuse business to individuals or companies to comply with extensive regulations designed to safeguard the financial system.
Major banks, including JPMorgan, have consistently denied allegations of systemic targeting of conservative groups and have expressed support for regulatory reforms advocated by the president to reduce banking regulations.
The lawsuit asserts, however, that JPMorgan's previous actions against conservative clients undermine CEO Dimon’s public statements on the issue.
Financial experts offer varied perspectives on the lawsuit's merit. Peter Conti-Brown, a professor specializing in financial regulation and legal studies at Wharton, described the lawsuit as "frivolous." He referenced Trump's extensive history of problematic financial dealings, including allegedly evading obligations to business partners and creditors. Conti-Brown argues that JPMorgan's decision to close accounts likely revolved around the assessment of Trump as a financial risk, rather than political considerations.
Similarly, Jeremy Kress, a business law professor at the University of Michigan and former Federal Reserve official, characterized the lawsuit as "pretty unusual." Kress observed the irony in the president suing JPMorgan concurrently with the deregulatory agenda pursued by his appointed banking regulators, which benefits JPMorgan and other large financial institutions.
The legal battle between Trump and JPMorgan continues to unfold, highlighting contentious intersections of politics, finance, and regulation in contemporary America.