President Donald Trump has sued JPMorgan and its CEO, Jamie Dimon, it was revealed on Thursday.
President Donald Trump has sued JPMorgan and its CEO, Jamie Dimon, it was revealed on Thursday. The 79-year-old and other plaintiffs in the case are seeking at least $5 billion. The American multinational banking institution, headquartered in New York City, responded to the suit, saying it has no merit.
Why Trump is suing JPMorgan Chase and Jamie Dimon
Trump and other plaintiffs allege that the bank closed their accounts in early 2021 after decades of being customers of the bank for political reasons. The closures came after the January 6, 2021, riot by Trump supporters at the US Capitol after Joe Biden was confirmed.
“Plaintiffs are confident that JPMC’s unilateral decision came about as a result of political and social motivations, and JPMC’s unsubstantiated, ‘woke’ beliefs that it needed to distance itself from President Trump and his conservative political views,” the lawsuit, filed in state court in Miami-Dade County, states.
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“In essence, JPMC debanked Plaintiffs’ Accounts because it believed that the political tide at the moment favored doing so,” it adds. The suit says that JPMorgan’s ‘reckless decision is leading a growing trend by financial institutions in the United States of America to cut off a consumer’s access to banking services if their political views contradict with those of the financial institution’.
JPMorgan responds
Responding to the suit by Trump, JPMorgan’s spokeswoman, Patricia Wexler, stated: “While we regret President Trump has sued us, we believe the suit has no merit. We respect the President’s right to sue us and our right to defend ourselves – that’s what courts are for,”
“JPMC does not close accounts for political or religious reasons.”
“We do close accounts because they create legal or regulatory risk for the company. We regret having to do so, but often rules and regulatory expectations lead us to do so,” she added.
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“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 weaponization of the banking.”
Jamie Dimon warns of ‘economic disaster’
The lawsuit was revealed days after Jamie Dimon warned that Trump’s proposed 10% cap on credit card interest rates would be an ‘economic disaster’. Speaking at the World Economic Forum (WEF) in Davos, the JPMorgan CEO added: “Eighty per cent of Americans will lose access to credit if this moves forward.”
“People crying the most will not be the credit card companies, it will be the restaurants, retailers, travel companies, the schools, the municipalities,” he said.
The article originally appeared on Hindustan Times
