Trump Takes On JPMorgan: A Clash Over Alleged 'Debanking'

Former President Donald Trump has filed a $5 billion lawsuit against JPMorgan Chase, accusing them of closing his accounts for political motives. The lawsuit highlights a broader issue of 'debanking,' as banks face scrutiny over alleged political bias and restrictive financial practices against certain industries.

Former U.S. President Donald Trump has launched a $5 billion lawsuit against JPMorgan Chase, claiming the bank unethically shut down his accounts as part of a political agenda. The lawsuit, lodged in a Florida state court, targets JPMorgan CEO Jamie Dimon and accuses the banking giant of violating its policies to further political gains.

JPMorgan has refuted claims of political bias in its banking practices. "We regret President Trump's decision to sue, but we firmly believe the lawsuit lacks merit," the bank stated. They also emphasized their commitment to defending themselves in court while maintaining that account closures are based on legal and regulatory considerations.

This case underscores the rising scrutiny on banks accused of 'debanking' politically sensitive clients and industries. Trump's allegations have intensified debates on banking practices concerning political influences, with the Office of the Comptroller of the Currency acknowledging increased limitations on services to controversial sectors like fossil fuels and firearms.

(With inputs from agencies.)