Trump sues JPMorgan for $5 billion over account closure after Capitol riot

President Donald Trump has filed a $5 billion (£3.7 billion) lawsuit against JPMorgan Chase, America’s biggest bank, accusing it of illegally closing his accounts for political reasons.

The lawsuit, which also names the bank’s chief executive Jamie Dimon, alleges that Trump and his businesses suffered “substantial financial and reputational harm” after the bank suddenly closed his accounts in 2021.

The bank took the step of freezing the accounts following the January 6, 2021 riot, when Trump supporters descended on the US Capitol to disrupt the formal ratification of the election results.

A JPMorgan Chase spokesman said, “The lawsuit has no merit.” “JPMC does not close accounts for political or religious reasons.”

“We close accounts because they pose a legal or regulatory risk to the company,” the bank said in a statement.

The lawsuit, which Trump said was coming over the weekend, is the latest confrontation between Trump and Dimon, who has led JPMorgan for two decades.

In recent weeks, Dimon has also spoken out against the administration’s proposal to set credit card limits and criticised its immigration policy and stance toward the Federal Reserve.

The complaint was filed in Florida, which prohibits banks from discriminating against customers based on their political views.

The complaint concerns JPMorgan’s decision to close Dimon’s accounts.

In the lawsuit, a copy of which was obtained by the BBC’s US news partner CBS, Trump says JPMorgan’s decision to close his accounts is “a prime indicator of a systemic, destructive industry practice aimed at coercing the public to change and realign their political views.”

The filing alleges that the move was motivated by “unproven, ‘woke’ beliefs that she needed to distance herself from President Trump and his conservative political views”.

“In short, JPMC cancelled Plaintiffs’ accounts because it believed the political tide was in favour of doing so at this time,” it said.

Trump accused the bank of trade defamation over its decision to name him and his business “and/or family” on a “blacklist”—a roster that was shared with other banks and was intended to identify people with a history of “malicious” activity.

Dimon himself reportedly approved that move.

After the Capitol riot, many companies avoided doing business with the president.

In its statement Thursday, JPMorgan said it regretted closing the accounts but said it was “rules and regulatory expectations” that often drove the decision.

It added, “We are asking both this administration and the former administration to change the rules and regulations that put us in this position, and we support the administration’s efforts to stop the weaponisation of the banking sector.”

Debunking, or the process of closing accounts, has been a priority issue for Trump, who has publicly held JPMorgan and other banks accountable for the practice and ordered a review of their activities.

Last month, regulators said they had found that nine of the country’s largest banks had “improperly discriminated” among customers based on their business activities, with sectors such as oil and gas, private prisons and adult entertainment facing restricted access.