US President Donald Trump has filed a $5 billion lawsuit against JPMorgan Chase and the company's CEO Jamie Dimon over account closures, Reuters reports.
The case was filed in a Florida state court. Trump accuses the largest US bank of violating its own policies. JPMorgan denies closing accounts for political or religious reasons. The company says the lawsuit brought by the country's president is unfounded.
Jamie Dimon, who has run JPMorgan for two decades and is one of the most influential figures in corporate America, told the World Economic Forum in Davos that capping credit card interest rates would limit access to credit for many consumers and would amount to "economic catastrophe." At the same time, industry leaders have welcomed the Trump administration's push for deregulation, which they say could cut red tape, boost profits and stimulate economic growth.
Donald Trump has accused JPMorgan of unilaterally violating its principles by shielding accounts belonging to him and his hotel companies. He said Jamie Dimon had ordered a "blacklist" to warn other banks not to do business with the Trump Organization and members of the president's family and the US president himself.
JPMorgan says it is closing accounts that pose legal or regulatory risk to the company. "We regret having to do this, but often rules and regulatory expectations require us to do so," the company said.
In recent years, banks have faced increasing political pressure, particularly from conservatives who believe lenders have discriminated against industries such as firearms and fossil fuels for political reasons. That pressure has intensified during Trump's second term.
In December, the Office of the Comptroller of the Currency, the leading banking regulator, reported that the nine largest banks in the US had restricted financial services to certain industries. The regulator did not provide specific examples of violations, but said it found that large banks either denied services to certain industries or required higher levels of oversight from 2020 to 2023. Those affected include oil and gas companies, cryptocurrency firms, tobacco and e-cigarette manufacturers, and firearms companies.