David Voreacos
President Donald Trump sued JPMorgan Chase & Co. and its billionaire chief executive officer, Jamie Dimon, for at least $US5 billion ($7.3 billion) over allegations that the lender stopped offering him and his businesses banking services for political reasons.
The complaint, filed in Miami-Dade County state court on Thursday (US time), accuses the bank of trade libel and breach of implied covenant of good faith and fair dealing. It also says Dimon violated Florida’s deceptive trade practices law. The bank said it doesn’t close accounts for political or religious reasons.
Trump has singled out JPMorgan repeatedly in his push to stamp out what he sees as banks refusing to provide financial services to customers for ideological reasons. The biggest US bank disclosed in November that it’s facing reviews, investigations and legal proceedings tied to the Trump administration’s fight against “debanking.” Separately, the Trump Organisation has already sued Capital One Financial Corp. over similar allegations.
“Debanking is a matter of public interest and significant importance to all consumers and businesses in the United States of America — and JPMC, especially given its storied and leading history, is a central actor in this ongoing and troubling saga,” according to a copy of the complaint reviewed by Bloomberg. The lawsuit couldn’t immediately be found in court records.
The bank said in a statement that the suit has no merit.
“We do close accounts because they create legal or regulatory risk for the company,” JPMorgan said.
“We regret having to do so but often rules and regulatory expectations lead us to do so. We have been asking both this Administration and prior administrations to change the rules and regulations that put us in this position, and we support the Administration’s efforts to prevent the weaponisations of the banking sector.”
Florida bars financial institutions from ending their banking relationship with an individual or business “based on their political opinions, speech or affiliations,” Trump’s lawyers said in the complaint.
The White House didn’t immediately return a call seeking comment.
Bloomberg
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