Donald Trump has filed a lawsuit against JPMorgan Chase and its CEO Jamie Dimon in Florida, seeking $5 billion in damages over claims of "political" debanking. The lawsuit, lodged in Miami-Dade County state court on Thursday, alleges that the bank closed Trump's accounts in early 2021 due to political and social motivations, causing "considerable financial harm and losses" to Trump and his hospitality companies.
Trump's legal team asserts that JPMorgan Chase abruptly terminated multiple accounts linked to Trump and his businesses after decades of a business relationship that involved hundreds of millions of dollars in transactions. They claim that the bank provided notice in February 2021 that the accounts would be closed by April 19 of that year, without offering any recourse or alternatives. The lawsuit argues that these closures were driven by political bias, pointing to JPMorgan's public code of conduct, which emphasizes integrity, ethical conduct, and zero tolerance for unethical behavior.
According to the complaint, JPMorgan Chase violated its own principles by unilaterally terminating Trump's bank accounts without warning or remedy, effectively blacklisting Trump, his companies, and family members. The lawsuit alleges that JPMorgan Chase urged other financial institutions to avoid business relationships with the Trumps, limiting their banking options and resulting in less favorable terms. Trump's lawyers further claim that this debanking had a "devastating impact" on his ability to transact and access assets, causing "extensive reputational harm".
Trump's legal team also alleges that Dimon did not follow up after assuring Trump he would investigate the account closures. The lawsuit further claims that JPMorgan Chase's actions are part of an "industry practice" where financial institutions cut off services to customers with differing political views. The suit alleges JPMorgan committed trade libel and breached its implied duty of good faith and fair dealing and that Dimon ran afoul of Florida's Unfair and Deceptive Trade Practices Act.
JPMorgan Chase has responded to the lawsuit by stating that it believes the suit has no merit. A spokesperson for the bank stated that JPMorgan Chase does not close accounts for political or religious reasons, but for legal or regulatory risk. The bank added that it regrets having to close accounts but that rules and regulatory expectations often lead to such decisions. JPMorgan Chase also stated that it has been asking both the current and prior administrations to change the rules and regulations that put them in this position and supports the current administration's efforts to prevent the weaponization of the banking sector.
The term "debanking" has gained prominence in recent years, particularly among conservative politicians who argue that banks discriminate against them and their affiliated interests. It refers to the practice of financial institutions refusing to work with individuals or businesses or abruptly closing their accounts.
