Donald Trump has filed a USD 5-billion lawsuit against JPMorgan Chase and its CEO Jamie Dimon, claiming the bank cut off his accounts for political reasons in 2021. The case has reignited debate in the US over “debanking” and banks’ use of reputational risk
Donald Trump has accused the bank of placing him and his companies on an internal “reputational blacklist”. FILE PIC
President Donald Trump has filed a lawsuit seeking USD 5 billion (about Rs 41,500 crore) in damages against banking major JPMorgan Chase & Co and its Chief Executive Officer (CEO) Jamie Dimon, alleging that the bank closed his accounts for political reasons after he left office in 2021.
The lawsuit was filed on Thursday in a Miami-Dade County court in Florida.
What is the case about?
Trump alleges that JPMorgan abruptly shut multiple personal and business accounts in February 2021, giving only 60 days’ notice and providing no clear explanation. According to the lawsuit, the move cut Trump and his businesses off from millions of dollars, disrupted operations, and forced them to urgently seek banking services elsewhere.
The President of the United States (US) has also accused the bank of placing him and his companies on an internal “reputational blacklist”, which he claims prevented other banks from doing business with him.
The suit accuses JPMorgan of trade libel, and alleges that CEO Jamie Dimon violated Florida’s Unfair and Deceptive Trade Practices Act.
Why is this significant?
The case brings renewed attention to the politically charged issue of “debanking”—when banks deny or withdraw services from customers due to perceived legal, regulatory, or reputational risks.
Conservative politicians in the US have long argued that banks unfairly target them and allied businesses. Trump and others claim that financial institutions began cutting ties after the January 6, 2021, attack on the US Capitol, often citing “reputational risk”.
Since returning to office, Trump’s administration has moved to restrict banks from using reputational risk as a justification for denying services.
The lawsuit also comes amid heightened tensions between the White House and Wall Street, with Trump recently pushing to cap credit card interest rates at 10 per cent—a proposal strongly opposed by large banks, including JPMorgan.
What does Trump allege?
According to the court filing, Trump says he personally raised the issue with Jamie Dimon, who allegedly assured him that he would look into the matter but failed to follow up.
The lawsuit claims the bank’s actions were politically motivated.
“JPMC debanked (Trump and his businesses) because it believed that the political tide at the moment favoured doing so,” the lawsuit states.
Trump’s lawyers further argued: “JPMC’s conduct is a key indicator of a systemic, subversive industry practice that aims to coerce the public to shift and re-align their political views.”
What is JPMorgan’s response?
JPMorgan Chase has rejected the allegations, saying the lawsuit is without merit.
In a statement issued on Thursday, the bank said: “While we regret President Trump has sued us, we believe the suit has no merit.”
The bank denied closing accounts for political reasons, adding: “Our company does not close accounts for political or religious reasons. We do close accounts because they create legal or regulatory risk for the company.”
JPMorgan said regulatory expectations often force such decisions and expressed support for efforts to prevent what it called the “weaponisation of the banking sector.”
What happens next?
The case is expected to add pressure to an already strained relationship between the Trump administration and major US banks, while potentially shaping future debates around banking regulations, political neutrality, and access to financial services.
The matter will now proceed through the Florida court system.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
