President Donald Trump says he plans to sue JPMorgan Chase (NYSE:JPM) for the abrupt closure of his accounts in the aftermath of the Jan. 6, 2021, Capitol riot.
Trump has accused the banking behemoth of “incorrectly and inappropriately DEBANKING” him subsequent to the January protest.
This allegation was made on his Truth Social platform on Saturday. The closure of Trump’s accounts was reportedly under the influence of the Biden administration, leaving him with a mere 20 days to relocate hundreds of millions of dollars.
This legal action threat emerges in the midst of JPMorgan’s disapproval of the Trump Justice Department’s criminal investigation into Federal Reserve Chair Jerome Powell. Jamie Dimon, JPMorgan’s CEO, has cautioned that undermining the Fed’s independence could potentially escalate inflation expectations and interest rates.
“I’ll be suing JPMorgan Chase over the next two weeks for incorrectly and inappropriately DEBANKING me after the January 6th Protest, a protest that turned out to be correct for those doing the protesting,” Trump wrote in the post.
Talking about Dimon, he said, “One was led to believe that I offered Jamie Dimon the job of Secretary of the Treasury, but that would be one that he would be very interested in. The problem is, I have Scott Bessent doing a fantastic job, A SUPERSTAR — Why would I give it to Jamie? No such offer was made there, or even thought of, either.”
In the meantime, the White House is proposing a cap on credit card interest rates at 10% for a year, a move that JPMorgan executives have warned could limit access to credit and adversely affect consumers.
Trump’s threat to sue revives a longstanding grievance related to his sudden removal from JPMorgan after his term ended in 2021, an action he has consistently described as politically driven.
JPMorgan has clarified that it does not close accounts due to political reasons, but did not refute that considerations of reputational risk may have influenced decisions during that period.
This development underscores the ongoing tension between the former President and the financial sector, particularly in the wake of the Capitol riots. The proposed lawsuit could potentially open up a new front in Trump’s battle against what he perceives as politically motivated actions by financial institutions.
The outcome of this legal action, if pursued, could set a precedent for how banks handle politically sensitive clients in the future.
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