JPMorgan Chase (JPM) Stock: Trump Files $5 Billion Debanking Lawsuit

TLDR

• Trump sued JPMorgan Chase and CEO Jamie Dimon for at least $5 billion over alleged politically motivated account closures in 2021.
• The bank closed Trump’s accounts seven weeks after the January 6, 2021 Capitol events while he was out of office.
• JPMorgan denies political motivation, citing legal and regulatory risk as reasons for closing accounts.
• The lawsuit filed in Miami-Dade County accuses the bank of trade libel and breach of good faith.
• Florida law prohibits banks from ending relationships based on political opinions or affiliations.

President Donald Trump filed a major lawsuit against JPMorgan Chase and CEO Jamie Dimon on Thursday. The legal action seeks at least $5 billion in damages.

Trump’s lawyer Alejandro Brito filed the complaint in Miami-Dade County. The lawsuit claims JPMorgan closed his accounts for political reasons in early 2021.

The bank shuttered Trump’s accounts in February 2021. This came roughly seven weeks after the Capitol assault on January 6. Trump had left office and his political prospects looked uncertain.

According to the complaint, JPMorgan acted without warning. The lawsuit states the bank was driven by “woke” beliefs to distance itself from Trump’s conservative political views.

Trump’s legal team says this violated Florida law. The state prohibits financial institutions from ending banking relationships based on political opinions or speech.

What the Lawsuit Claims

The complaint accuses JPMorgan of multiple violations. These include trade libel and breach of implied covenant of good faith.

Trump’s lawyers also claim Dimon violated Florida’s deceptive trade practices law. They argue the account closures caused both financial and reputational damage.

The lawsuit alleges JPMorgan went further than just closing accounts. The bank reportedly placed Trump, his organization and family members on a wealth management “blacklist.”

The complaint states JPMorgan “believed that the political tide at the moment favored” cutting ties with Trump. This happened when his political standing was at a low point.

JPMorgan Fights Back

JPMorgan quickly rejected the lawsuit’s claims. A bank spokeswoman said the suit has no merit.

The bank explained its account closure policy. “We do close accounts because they create legal or regulatory risk for the company,” the spokeswoman said.

JPMorgan stated it never closes accounts for political or religious reasons. The bank said rules and regulatory expectations often force difficult decisions.

The bank added it has asked current and prior administrations to change these rules. JPMorgan said it supports preventing weaponization of the banking sector.

Broader Debanking Battle

This lawsuit represents part of Trump’s larger campaign against debanking. The president has repeatedly targeted major banks on this issue.

At the World Economic Forum last year, Trump criticized Bank of America CEO Brian Moynihan. He also called out JPMorgan during that appearance.

In August, Trump told CNBC that JPMorgan requested he close his accounts. He claimed Bank of America rejected a deposit of over $1 billion.

Trump later signed an executive order on debanking. It directed regulators to identify institutions engaged in unlawful practices.

The Trump Organization already sued Capital One over similar claims. JPMorgan disclosed in November it faces multiple reviews and investigations related to debanking.

The bank is currently the largest in the United States by total assets. JPMorgan stock has shown resilience despite the legal uncertainty.