President Donald Trump sued JPMorgan Chase and its CEO, Jamie Dimon, on Thursday for closing accounts belonging to Trump and related entities in early 2021, in what the lawsuit calls political actions.
The closures came on the heels of the Jan. 6, 2021, riot by Trump supporters at the U.S. Capitol, and Trump exiting the White House later that same month after his electoral loss to former President Joe Biden was confirmed.
JPMorgan on Thursday denied that it closed Trump’s accounts for political reasons and suggested that the closures were due to federal rules and regulations that the bank has been seeking to change during this and prior presidential administrations.
Trump and the other plaintiffs in the case, which are business entities related to the president, are seeking at least $5 billion in civil damages. The plaintiffs had been customers of the bank for decades, the suit says.
“Plaintiffs are confident that JPMC’s unilateral decision came about as 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,” the lawsuit alleges.
“In essence, JPMC debanked Plaintiffs’ Accounts because it believed that the political tide at the moment favored doing so,” says the suit, which was filed in state court in Miami-Dade County, Florida.
The suit says JPMorgan failed to disclose why the bank was terminating the accounts, but that the “plaintiffs have subsequently learned that they were debanked as a result of political discrimination against President Trump, the Trump Organization, its affiliated entities, and/or the Trump family.”
The suit does not detail what the plaintiffs learned that substantiated that claim.
The suit also says that JPMorgan’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.”
In addition to alleging motivations for the closures, the complaint says that Trump and the plaintiffs “have recently learned that JPMC — at the direction of Dimon — has unlawfully and unjustifiably published some or all of their names, including the names of President Trump, the Trump Organization with its affiliated entities, and/or the Trump family, on a blacklist.”
That purported blacklist is accessible by federally regulated banks “and is comprised of individuals and entities that have a history of malfeasant acts and are otherwise non-compliant with applicable banking rules and regulations,” the suit says, while stating that the plaintiffs “have always complied” with banking rules and regulations.
The complaint does not give a formal name for that blacklist or indicate that it was part of a government regulatory apparatus.
The complaint alleges trade libel, and breach of implied covenant of good faith and fair dealing by JPMorgan.
It also alleges violations of Florida’s Unfair and Deceptive Trade Practices Act by Dimon.
In addition to Trump, the plaintiffs include Trump Payroll Corp. and various limited liability corporations.
JPMorgan, in a statement to CNBC, said, “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 — that’s what courts are for,” said the bank’s spokeswoman, Patricia Wexler. “JPMC does not close accounts for political or religious reasons.”
“We do close accounts because they create legal or regulatory risk for the company. We regret having to do so but often rules and regulatory expectations lead us to do so,” Wexler said.
“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.”