Explainer: Why Donald Trump is suing JPMorgan Chase for USD 5 billion

President Donald Trump has filed a lawsuit seeking USD 5 billion about Rs 41500 crore in damages against banking major JPMorgan Chase amp Co and its Chief Executive Officer CEO Jamie Dimon alleging that the bank closed his accounts for political reasons after he left office in 2021The lawsuit was filed on Thursday in a MiamiDade County court in FloridaWhat is the case aboutTrump alleges that JPMorgan abruptly shut multiple personal and business accounts in February 2021 giving only 60 daysrsquo notice and providing no clear explanation According to the lawsuit the move cut Trump and his businesses off from millions of dollars disrupted operations and forced them to urgently seek banking services elsewhereThe President of the United States US has also accused the bank of placing him and his companies on an internal ldquoreputational blacklistrdquo which he claims prevented other banks from doing business with himThe suit accuses JPMorgan of trade libel and alleges that CEO Jamie Dimon violated Floridarsquos Unfair and Deceptive Trade Practices ActWhy is this significantThe case brings renewed attention to the politically charged issue of ldquodebankingrdquomdashwhen banks deny or withdraw services from customers due to perceived legal regulatory or reputational risksConservative politicians in the US have long argued that banks unfairly target them and allied businesses Trump and others claim that financial institutions began cutting ties after the January 6 2021 attack on the US Capitol often citing ldquoreputational riskrdquoSince returning to office Trumprsquos administration has moved to restrict banks from using reputational risk as a justification for denying servicesThe lawsuit also comes amid heightened tensions between the White House and Wall Street with Trump recently pushing to cap credit card interest rates at 10 per centmdasha proposal strongly opposed by large banks including JPMorganWhat does Trump allegeAccording to the court filing Trump says he personally raised the issue with Jamie Dimon who allegedly assured him that he would look into the matter but failed to follow upThe lawsuit claims the bankrsquos actions were politically motivatedldquoJPMC debanked Trump and his businesses because it believed that the political tide at the moment favoured doing sordquo the lawsuit statesTrumprsquos lawyers further argued ldquoJPMCrsquos conduct is a key indicator of a systemic subversive industry practice that aims to coerce the public to shift and realign their political viewsrdquoWhat is JPMorganrsquos responseJPMorgan Chase has rejected the allegations saying the lawsuit is without meritIn a statement issued on Thursday the bank said ldquoWhile we regret President Trump has sued us we believe the suit has no meritrdquoThe bank denied closing accounts for political reasons adding ldquoOur company does not close accounts for political or religious reasons We do close accounts because they create legal or regulatory risk for the companyrdquoJPMorgan said regulatory expectations often force such decisions and expressed support for efforts to prevent what it called the ldquoweaponisation of the banking sectorrdquoWhat happens nextThe case is expected to add pressure to an already strained relationship between the Trump administration and major US banks while potentially shaping future debates around banking regulations political neutrality and access to financial servicesThe matter will now proceed through the Florida court system