Why JPMorgan Chase removed Trump's bank account. Debanking lawsuit explained
Donald Trump sues JPMorgan Chase and CEO Jamie Dimon for $5 billion, alleging politically motivated closure of accounts.
President Donald Trump filed a $5 billion lawsuit against the banking giant JPMorgan Chase and its CEO Jamie Dimon on January 22. Trump alleged that JPMorgan Chase debanked him and his companies for political reasons.
The lawsuit was filed in Florida state court and accuses that JPMorgan closed multiple accounts related to Trump without any explanation in the wake of the January 6, 2021, U.S. Capitol attack.
Read more: Why Trump is suing JPMorgan Chase, CEO Jamie Dimon - Explained
What does Trump's lawsuit say about debanking?
The suit claims that JPMorgan and Dimon violated Florida’s deceptive trade practices law, engaged in trade libel, and breach of implied covenant of good faith and fair dealing by shutting off Trump's access to core banking services.
The suit detailed that the bank's “reckless decision is leading a growing trend by financial institutions in the United States of America to cut off a consumer’s access to banking services if their political views contradict with those of the financial institution.”
The lawsuit asserts that the closures by debanking caused “considerable financial and reputational harm” and alleges that the bank placed Trump and his entities on an internal “blacklist.”
{{/usCountry}}The lawsuit asserts that the closures by debanking caused “considerable financial and reputational harm” and alleges that the bank placed Trump and his entities on an internal “blacklist.”
{{/usCountry}}According to the complaint, “JPMC debanked Plaintiffs’ Accounts because it believed that the political tide at the moment favored doing so.”
{{/usCountry}}According to the complaint, “JPMC debanked Plaintiffs’ Accounts because it believed that the political tide at the moment favored doing so.”
{{/usCountry}}Debanking is the act of a financial institution cutting off a customer’s access to services of the bank.
{{/usCountry}}Debanking is the act of a financial institution cutting off a customer’s access to services of the bank.
{{/usCountry}}The lawsuit also stated that Trump is “confident” that the bank's decision was 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 views.”
{{/usCountry}}The lawsuit also stated that Trump is “confident” that the bank's decision was 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 views.”
{{/usCountry}}However, the suit does not give any proof or evidence for the claim that Dimon and JPMorgan were politically motivated.
{{/usCountry}}However, the suit does not give any proof or evidence for the claim that Dimon and JPMorgan were politically motivated.
{{/usCountry}}Read more: Trump administration to block foreign aid from those promoting abortion, DEI and gender identity
What did JPMorgan and Dimon say?
Dimon told CNBC that the bank “regrets” that Trump had to assert a lawsuit against them; however, he believes that the “suit has no merit.”
Patricia Wexler, JPMorgan's spokeswoman, told CNBC, “We respect the President’s right to sue us and our right to defend ourselves - that’s what courts are for. ”
She added, “JPMC does not close accounts for political or religious reasons.”
However, she admitted that the bank closes accounts if “they create legal or regulatory risk for the company.”
She said, “We regret having to do so, but often rules and regulatory expectations lead us to do so.”
She added, “We have been asking both this Administration and prior administrations to change the rules and regulations that put us in this position, and we support the Administration’s efforts to prevent the weaponization of the banking.”
