Morgan Chase Confirms Closing Trump Accounts a Month After Jan. 6 Amid $5 Billion 'Debanking' Lawsuit

The Greek Courier

NEW YORK (AP) — JPMorgan Chase & Co. has formally acknowledged in a recent court filing that it closed the bank accounts of President Donald Trump and several of his businesses a month after the January 6, 2021, U.S. Capitol attack. This admission is the latest development in a high-stakes legal battle where Trump is suing the nation’s largest bank and its CEO, Jamie Dimon, for at least $5 billion, alleging "political debanking." [1][2]

The acknowledgment came in a filing submitted in response to Trump's lawsuit, which was initially filed in a Florida state court in Miami. [3][4]

JPMorgan's Legal Position and Defense

JPMorgan Chase has consistently denied that political motivations drove the account closures. In statements regarding the lawsuit, the bank has asserted, "Our company does not close accounts for political or religious reasons. We do close accounts because they create legal or regulatory risk for the company." [4][5] The bank claims that such decisions are often necessitated by "rules and regulatory expectations." [6][7]

The lawsuit, filed by Trump's Miami-based lawyer Alejandro Brito, alleges that the bank terminated the relationship in February 2021, giving only 60 days' notice, and that this action was based on "political and social motivations" and "unsubstantiated, 'woke' beliefs" that the bank needed to distance itself from Trump and his conservative views. [4][8] Trump's legal team further claims the bank placed him and his entities on a "blacklist," which allegedly warns other financial institutions against doing business with him, constituting trade libel under Florida law. [1][3]

Why JPMorgan Closed the Accounts After January 6th?

President Trump alleges the account closures were politically motivated, occurring shortly after his supporters stormed the Capitol while he was out of office and his political standing was low. [9][10]

Based on the available information, JPMorgan Chase likely closed the accounts due to severe reputational and regulatory risk following the January 6th insurrection attempt. While the bank explicitly denies political motivation, the timing is undeniable. Major corporations, including many financial institutions, distanced themselves from Trump immediately following the riot [8][11], including two law firms that represented him and the Trump Organization, and the PGA of America, which stripped ‌Trump's club in Bedminster, New ⁠Jersey, of the 2022 PGA Championship.

Banks are under intense regulatory scrutiny to monitor for suspicious activity, and the high-profile nature of the January 6th event could have been interpreted internally as creating an unacceptable level of "reputational risk," a justification the bank has cited for account closures. [1][5] Furthermore, some analysts note that while Trump's lawsuit alleges political debanking, the customer agreements likely allowed the bank to close accounts for almost any reason, leaving Trump to rely on claims of bad faith or violation of Florida's specific state law against political discrimination. [10]

A Tactical War of Legal Attrition

JPMorgan Chase is actively seeking to move the case out of Florida state court, where Trump filed the suit, to a federal court in Miami, with the ultimate goal of transferring it to New York. [2][12]

The reason JPMorgan wants to avoid Florida state court appears to be tactical. Corporate defendants often prefer federal court, where judges are appointed for life rather than being elected, as is the case for Florida trial court judges. [9] Crucially, JPMorgan has argued that Trump "fraudulently" named CEO Jamie Dimon as a defendant specifically to keep the case in Florida state court, claiming that Dimon is not subject to the Florida statute cited in the lawsuit because he is "closely and comprehensively regulated by the federal banking agencies." [7][13]

The Case Against Dimon

The lawsuit names CEO Jamie Dimon personally, accusing him of approving the "blacklist." [3][11]

The validity of the direct attack against Dimon is being challenged by the bank. JPMorgan argues that Dimon was "fraudulently joined" as a defendant solely to retain jurisdiction in Florida state court. [13] Furthermore, Dimon has recently been critical of some aspects of the administration's agenda, including proposals to cap credit card interest rates. [11][14] While Trump's lawyers argue Dimon's actions contradict the bank's code of conduct, JPMorgan contends that its actions are governed by federal regulatory risk, not personal or political vendettas against Dimon. [6][15]

As the bank is seeking dismissal of the "threadbare" lawsuit[13], this case follows a similar, ongoing lawsuit filed by the Trump Organization against Capital One for alleged debanking in 2021. [1][17]

Source Credit: This report is based on information primarily sourced from The Associated Press (AP), Forbes, The Guardian, Global News, Fox Business, and other news outlets reporting on the lawsuit filed by Donald Trump against JPMorgan Chase and Jamie Dimon. [3][4]

Sources:

1. JPMorgan Acknowledges It Closed Trump's Accounts After Jan. 6 - Forbes
2. JPMorgan concedes it closed Trump's accounts after Jan. 6 attack - Houston Chronicle
3. Trump sues JPMorgan for $5B over 'debanking' - The Week
4. Trump sues JPMorgan and CEO for $5 billion over alleged account closures - Global News
5. Fact Check Team Exploring Trump's political debanking lawsuit against JPMorgan Chase
6. JPMorganChase Statement Regarding President Trump's Lawsuit
7. JPMorgan Chase Moves to Dismiss Trump Debanking Lawsuit - PYMNTS.com
8. Trump sues JPMorgan Chase and Jamie Dimon for at least $5bn - The Guardian
9. WEEKEND READ: Allegations of JP Morgan 'blacklist' and de-banking – inside Donald Trump's $5 billion suit against bank and Jamie Dimon - AML Intelligence
10. Trump Sues JPMorgan for $5 Billion Over Debanking Claims - YouTube
11. Trump accuses JPMorgan and Jamie Dimon of politically motivated account closures
12. JPMorgan reveals that it closed Trump's accounts after Jan. 6 attack - Los Angeles Times
13. JPMorgan says Trump "fraudulently" named Dimon in lawsuit - Investing.com
14. Trump sues Jamie Dimon, JPMorgan Chase for alleged 'political' account closures
15. Trump sues JPMorgan Chase and CEO Jamie Dimon for $5B over alleged 'political' debanking - Fox Business
16. JPMorgan concedes it closed Trump's accounts after Jan. 6 attack - Stamford Advocate
17. JPMorgan concedes it closed Trump's accounts after Jan. 6 attack - SFGATE.