Trump v JPMorgan: Lawsuit Over 'Debanking' Sparks Debate on Who Banks Can Shut Out

JPMorgan Chase is facing a $5 billion (£3.7 billion) lawsuit from President Donald Trump after the latter accused it of a politically-driven illegal closing of his accounts in 2021, causing 'considerable financial and reputational harm.'

In a report by BBC, the lawsuit also names JPMorgan Chase Chief Executive Jamie Dimon. Named the biggest bank in America, JPMorgan Chase allegedly moved to close President Trump's account amid the January 2021 riot. The bank denies the allegations, saying, 'JPMC does not close accounts for political or religious reasons.' It added, 'We do close accounts because they create legal or regulatory risk for the company. We regret having to do so but often rules and regulatory expectations lead us to do so.'

The lawsuit states that Trump 'is confident that JPMC's unilateral decision came about as a result of political and social motivations, and JPMC's unsubstantiated, 'woke' beliefs that it needed to distance itself from President Trump and his conservative political reviews.'

In a copy of the lawsuit obtained by BBC from CBS, Trump considers the closing of his accounts as a 'key indicator of a systemic, subversive industry practice that aims to coerce the public to shift and re-align their political views.'

Trump 'Debanked'

In a coverage by The Guardian, President Donald Trump announced on social media his decision to file a lawsuit against JPMorgan Chase, Bank of America, and stated that several other banks denied him of depositing following the 2021 riot. Both JPMorgan Chase and Bank of America have denied the accusations.

The President said that he had been 'incorrectly and inappropriately' discriminated against. In response, JPMorgan Chase 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 lawsuit states that along with Trump, members of his family, as well as the Trump Organisation have been blacklisted by JPMorgan Chase, deciding that the decision to do so was 'final and unequivocal.' The lawsuit states the bank 'did not provide plaintiffs with any recourse, remedy or alternative,' suggesting the move was arbitrary. Trump's personal lawyer Alejandro Brito filed the lawsuit in Miami, Florida.

Dimon vs Trump

Trump's decision is not unprecedented, it seems. Just last week, the chief executive called out Trump's plan to cap credit card costs by 10% and warned such move would be 'an economic disaster,' per a BBC report. Dimon said Trump's proposal would prevent a majority of the Americans access to their 'back up credit.'

Dimon said, 'The people crying the most won't be the credit card companies, it will be the restaurants, the retailers, the travel companies, the schools, the municipalities because people will miss their water payments.'

Trump told CNBC: 'I've had calls from credit card companies, people that are friends of mine, actually, and I treat them good. I respect them greatly, but they make a lot of money, they got to give people a break.'

On Wednesday, Jamie Dimon made headlines for being in a different position than the US President in his immigration policies and told the World Economic Forum in Switzerland, 'I don't like what I'm seeing, with five grown men beating up little women. So I think we should calm down a little bit on the internal anger about immigration,' as reported by CNBC.

The lawsuit highlights the latest addition to the feud between Jamie Dimon and President Donald J. Trump.