Key facts
- JPMorgan Chase and Capital One are fighting lawsuits filed by Donald Trump and his businesses.
- Trump alleges banks closed his accounts for political reasons, which the banks deny.
- Capital One cited an anti-money-laundering review for account closures.
- Legal experts believe settling could encourage more 'debanking' lawsuits and unknown demands.
- A federal regulator is investigating about 100,000 debanking complaints.
- Trump is seeking billions in damages from both banks.
JPMorgan Chase and Capital One are opting to fight lawsuits from Donald Trump and his businesses, a strategy legal experts and industry sources suggest carries fewer risks than settling. Trump alleges the banks closed his accounts in 2021 for political reasons, a claim they deny.
Capital One stated its account closures followed an internal anti-money-laundering review, a justification the Trump Organization called a pretext for politically motivated action. While legal experts believe the banks have strong defenses, fighting Trump could deepen animosity and expose confidential internal matters.
However, settling could be more hazardous, potentially encouraging similar lawsuits from other customers alleging 'debanking' and leading to unknown demands from the Trump family. A federal bank regulator is currently investigating approximately 100,000 such complaints against multiple banks.
In a lawsuit filed in March 2025, Eric Trump and the Trump Organization alleged Capital One closed over 300 accounts due to political bias and 'woke' beliefs. Subsequently, in January 2026, Donald Trump sued JPMorgan and CEO Jamie Dimon for at least $5 billion, accusing them of promoting a 'woke' agenda. Banks typically cite broad discretion in customer agreements to close accounts, often in accordance with regulatory guidance.
Sources familiar with the matter indicate that targets who push back in court against administration measures have sometimes achieved favorable rulings. Conversely, settling systemic practice cases can expose banks to broader financial harm, as seen in past mortgage crisis and rate-rigging scandals. The Office of the Comptroller of the Currency and the Justice Department are also investigating debanking allegations.