Trump Sues JPMorgan and CEO Dimon Over Alleged Bank Debanking Practices

US President Donald Trump has filed a $5 billion lawsuit against JPMorgan Chase and its CEO Jamie Dimon in Miami-Dade County court in Florida. The lawsuit alleges that JPMorgan abruptly closed multiple accounts in February 2021, providing just 60 days’ notice, without explanation. This action allegedly cut off access to millions of dollars for Trump and his businesses, disrupting their operations.

The lawsuit claims that JPMorgan closed the accounts due to a perceived shift in the political tide at the time. In response, JPMorgan stated that it “regrets” Trump’s decision to sue but maintains that the account closures were not made for political reasons. The bank asserts that it closes accounts when they pose a legal or regulatory risk.

The White House has announced that it will refer the matter to President Trump’s outside counsel. This development comes as banks have faced growing pressure from conservatives who claim lenders are adopting “woke” policies and discriminating against certain industries, such as firearms and fossil fuels.

US banking regulators have acknowledged that some of the largest US banks have placed restrictions on providing financial services to certain sectors, a practice known as “debanking”. JPMorgan had previously cooperated with government inquiries into its policies and procedures. The Federal Bank Regulators have also revised their approach to policing banks, shifting from reputational risk to more explicit prohibitions.

The lawsuit is the latest in a series of disputes between Trump and major financial institutions.

Source: Al Jazeera