Former President Donald Trump just filed a $5 billion lawsuit against the biggest bank in America—JPMorgan Chase. In his complaint, he contends the bank shut down his accounts for purely political reasons. The lawsuit, which names Jamie Dimon, the bank’s chief executive, alleges that the bank’s actions were both unlawful and damaging to Trump’s reputation and business interests.
The controversy centers around the abrupt closure of Trump’s accounts with JPMorgan Chase in 2021, following the violent events of January 6 during the Capitol riot. According to Trump’s lawsuit, Dimon personally signed off on the closure of the accounts. He contends that this decision was a product of the political climate prevalent in the late 1990s.
Trump’s legal team contends that JPMorgan Chase engaged in trade libel. They allege the bank put his name and his businesses on a “do not finance” or “blacklist” that was circulated to other banks. The overall goal of this list was to find people who were doing “malfeasant” things. As Trump’s lawsuit implied, these practices are a key part of a vast and systemic effort to shape public opinion and disturb political attitudes.
Last month, JPMorgan Chase sought to justify its arbitrary account closings. The bank said it was sorry this was needed, but maintained it only did so based on “rules and regulatory expectations.” A spokesperson for the bank emphasized that “JPMC does not close accounts for political or religious reasons” and added, “We do close accounts because they create legal or regulatory risk for the company.”
The lawsuit highlights broader concerns regarding banking practices, particularly regarding how banks have made “inappropriate distinctions” among customers based on their business activities. Just last week, regulators found a massive shortcoming at nine of the nation’s largest banks, including JPMorgan Chase. They described how industries such as oil and gas, private prisons, and adult entertainment are increasingly failing to find banking services.
Trump has positioned debanking as a critical issue since leaving office, vocally criticizing JPMorgan Chase and other financial institutions for their practices. He contends that shutting down his accounts portends a more sinister development. Banks continue to dictate far too much power over our national political discourse.
“In essence, JPMC debanked plaintiffs’ accounts because it believed that the political tide at the moment favored doing so.” – Donald Trump’s lawsuit
As this legal battle continues to unfold, it does call into question the wisdom of that intersection of finance and politics. These steps alone could go a long way toward changing how banks are allowed to serve their customers. Their business practices can be molded and manipulated by clients’ political leanings and ideas.