Introduction to the Lawsuit

Donald Trump has filed a $5 billion lawsuit against JPMorgan Chase, accusing the company of defunding him and his business empire after the end of his first term in the White House. The US President claims America’s largest bank by assets and its CEO closed a number of personal and business accounts with 60 days’ notice in February 2021 for political reasons.

Background of the Dispute

The bank denied this was the case. Mr. Trump argues that he and his business interests were cut off from millions of dollars and suffered disruptions as they struggled to open bank accounts elsewhere. According to reports, the companies allegedly affected included several of his hospitality holdings. The lawsuit, filed in Miami-Dade County court in Florida, relates to the timing of the transfer of power to Joe Biden after the 2020 election results, which Mr. Trump claimed were rigged.

Details of the Lawsuit

The disputed election culminated in the so-called Capitol insurrection on January 6th. “JPMC drained the bank account [Trump and his businesses] because it was believed that the current political situation favored this,” the lawsuit says. In a statement, JPMorgan said it regretted the fact that Mr. Trump had brought the lawsuit, but a spokesman added: "We believe the lawsuit is without 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."

Similar Cases

The debanking case is reminiscent of a separate dispute in the UK between a political leader and a bank over the closure of his accounts. A settlement was agreed almost two years later, preventing the leader’s planned civil action. Mr. Trump also brought another defamation case in Florida, against a media outlet over its editing of a speech he gave on the day of the Capitol protests.