NEW YORK (AP) — President Donald Trump sued banking big JPMorgan Chase and its CEO Jamie Dimon for $5 billion on Thursday over allegations that JPMorgan stopped offering banking companies to him and his companies for political causes after he left workplace in January 2021.
The lawsuit, filed in Miami-Dade County courtroom in Florida, alleges that JPMorgan abruptly closed a number of accounts in February 2021 with simply 60 days discover and no clarification. By doing so, Trump claims JPMorgan and Dimon minimize the president and his companies off from thousands and thousands of {dollars}, disrupted their operations and compelled Trump and the companies to urgently open financial institution accounts elsewhere.
“JPMC debanked (Trump and his businesses) because it believed that the political tide at the moment favored doing so,” the lawsuit alleges.
In the lawsuit, Trump alleges he tried to lift the problem personally with Dimon after the financial institution began to shut his accounts, and that Dimon assured Trump he would determine what was taking place. The lawsuit alleges Dimon didn’t comply with up with Trump. Further, Trump’s attorneys allege that JPMorgan positioned the president and his corporations on a reputational “blacklist” that each JPMorgan and different banks use to maintain shoppers from opening accounts with them sooner or later.
In an announcement, JPMorgan stated it believes the go well with has no advantage.
Trump threatened to sue JPMorgan Chase final week at a time of heightened tensions between the White House and Wall Street. The president stated he wished to cap rates of interest on bank cards at 10% to assist decrease prices for shoppers. Chase is without doubt one of the largest issuers of bank cards within the nation and a financial institution official informed reporters that it will struggle any effort by the White House or Congress to implement a fee cap on bank cards. Bank trade executives have additionally bristled at Trump’s assaults on the independence of the Federal Reserve.
Debanking happens when a financial institution closes the accounts of a buyer or refuses to do enterprise with a buyer within the type of loans or different companies. Once a comparatively obscure situation in finance, debanking has turn out to be a politically charged situation lately, with conservative politicians arguing that banks have discriminated in opposition to them and their affiliated pursuits.
Debanking first turned a nationwide situation when conservatives accused the Obama administration of pressuring banks to cease extending companies to gun shops and payday lenders underneath “Operation Choke Point.”
Trump and different conservative figures have alleged that banks minimize them off from their accounts underneath the umbrella time period of “reputational risk” after the Jan. 6, 2021, assault on the U.S. Capitol. Since Trump got here again into workplace, the president’s banking regulators have moved to cease any banks from utilizing “reputational risk” as a cause for denying service to prospects.
“JPMC’s conduct … is a key indicator of a systemic, subversive industry practice that aims to coerce the public to shift and re-align their political views,” Trumps attorneys wrote within the lawsuit.
Trump accuses the financial institution of commerce libel and accuses Dimon himself of violating Florida’s Unfair and Deceptive Trade Practices Act.
In its assertion, JPMorgan stated that it “regrets” that Trump sued the financial institution however insisted it didn’t shut the accounts for political causes.
“JPMC does not close accounts for political or religious reasons,” a financial institution spokesperson stated. “We do close accounts because they create legal or regulatory risk for the company.”
https://www.huffpost.com/entry/trump-sues-jpmorgan-for-5-billion-after-banking-giant-dubbed-him-a-liability_n_69728598e4b0283a0976e31d