Trump sues JPMorgan Chase, CEO Jamie Dimon for $5bn over alleged debanking

US President Donald Trump has filed a lawsuit against JPMorgan Chase and its CEO Jamie Dimon, accusing the country’s largest lender of unlawfully closing his bank accounts in what he claims was a case of politically motivated "debanking".

According to news agency Reuters, the lawsuit, seeking $5 billion in damages, was filed on Thursday morning in a Florida state court in Miami by Trump’s attorney, Alejandro Brito, on behalf of the President and several of his hospitality businesses. The filing was first reported by Fox Business.

In a statement issued later the same day, JPMorgan confirmed that it had been sued and rejected the claims outright, saying the case was without merit.

LAWSUIT FILED IN MIAMI COURT

According to the court filing cited in the Fox Business report, Trump alleges that JPMorgan violated its own internal rules by abruptly terminating multiple accounts linked to him and his companies.

"Despite claiming to hold these principles (the bank's code of conduct) dear, JPMC violated them by unilaterally – and without warning or remedy – terminating several of Plaintiff's bank accounts," the lawsuit claims.

The legal action follows comments made by Trump over the weekend, when he said he planned to sue JPMorgan within weeks for allegedly cutting off his access to banking services after the January 6, 2021, attack on the US Capitol by his supporters. Trump has repeatedly argued that large financial institutions unfairly targeted him and other conservatives in the aftermath of the unrest.

JPMORGAN DENIES POLITICAL MOTIVE

JPMorgan pushed back strongly against the allegations, saying its decisions were based on regulatory and legal considerations rather than politics.

"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," the bank said in a statement to Reuters. The bank added that it does not close accounts because of a customer’s beliefs or affiliations.

The lawsuit lands amid political scrutiny of debanking, a practice in which financial institutions limit or withdraw services from customers they view as high-risk.

Last month, a US banking regulator said the nine largest US banks had, in the past, placed restrictions on providing financial services to certain controversial industries. Banks, however, say such decisions are driven by compliance obligations, reputational concerns and regulatory expectations rather than ideology.

- Ends

With inputs from agencies

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