Lawsuit alleges political debanking
U.S. President Donald Trump on Thursday filed a $5 billion lawsuit against JPMorgan Chase and its chief executive Jamie Dimon, accusing the bank of unlawfully closing several of his accounts to advance a political agenda.
The lawsuit was filed in a Florida state court in Miami-Dade County and alleges that JPMorgan violated its own internal policies by singling out Trump to ride what the filing described as a shifting political tide.
JPMorgan rejected the accusations, stating that it does not close accounts for political or religious reasons and that the lawsuit has no legal merit.
Claims of blacklist and reputational damage
Trump accused JPMorgan of unilaterally shutting accounts linked to him and his hospitality businesses, and alleged that Dimon ordered the creation of a malicious blacklist to discourage other banks from doing business with Trump, his family members, and the Trump Organization.
The lawsuit claims that the account closures caused significant reputational harm by forcing Trump and related entities to seek alternative banking relationships under the perception that they had been debanked.
JPMorgan responded that it closes accounts only when they pose legal or regulatory risk, adding that regulatory expectations sometimes require such actions.
Broader scrutiny of bank practices
The case comes amid growing political scrutiny of large banks, particularly from conservative lawmakers and groups who argue that financial institutions have discriminated against certain clients for political reasons.
Trump has previously made similar accusations against other lenders, including Bank of America, and has called for a 10% cap on credit card interest rates. Dimon has warned that such a cap would restrict access to credit and harm consumers.
In December, a leading U.S. banking regulator reported that several major banks had restricted services to certain industries between 2020 and 2023, often citing compliance or risk concerns. Regulators said they continue to review thousands of debanking complaints.
Regulatory backdrop and industry response
Federal regulators last year said they would stop supervising banks based on reputational risk alone, a standard widely criticized by the banking industry as vague and subjective.
JPMorgan has said it is cooperating with government inquiries into its account policies as regulators reassess how compliance rules and supervisory standards influence banks’ decisions to terminate customer relationships.
