Is "debanking" just a trigger? Trump sues Dimon, and over a decade of grievances surface

Former U.S. President Donald Trump has launched a legal offensive against one of Wall Street's most influential figures. This $5 billion lawsuit ostensibly concerns access to banking services, but it is actually another intense clash in the complex relationship between two powerful figures that has spanned over a decade.

On January 22 local time, Trump sued JPMorgan Chase and its CEO Jamie Dimon, accusing the largest bank in the U.S. of illegally "de-banking" his business due to its political stance and placing him on an industry "blacklist," preventing him from obtaining services from other lending institutions. Trump stated to reporters aboard Air Force One:

"They are not allowed to do this—what Dimon is doing, he is not allowed to do."

JPMorgan Chase responded that the company follows federal rules that require banks to "close accounts that pose legal or regulatory risks to the company." Like other banks, it withdrew support for Trump's business in the weeks following the attack on the Capitol by Trump supporters in 2021. JPMorgan Chase expressed support for the Trump administration's recent efforts to refine relevant laws to prevent the "weaponization of the banking industry."

This lawsuit marks the latest rift in Trump's relationship with Wall Street. After Trump's tax cuts and deregulation policies brought one of the most profitable years in history for the U.S. banking industry, he has launched a series of attacks on financial institutions this month, including demands for significant cuts to credit card interest rates that could severely harm profitability. Dimon, as a veteran figure in the industry, has long acted as a mediator between Wall Street and the White House, but now he has become the target of the president's lawsuit.

"De-banking" Allegations and Regulatory Struggles

The lawsuit was initiated by attorney Alejandro "Alex" Brito, who previously assisted Trump in suing several media organizations. The complaint alleges that Dimon and his "woke" Wall Street institution severed ties with Trump's business empire for political reasons after the end of Trump's first term.

In response, JPMorgan Chase pointed out that it follows federal rules aimed at avoiding reputational risks. Previously, the Trump administration's Office of the Comptroller of the Currency (OCC), under former director Jonathan Gould, found that several large lending institutions had implemented restrictive services or stricter scrutiny on certain clients between 2020 and 2023, resulting in "improper discrimination." The Federal Deposit Insurance Corporation (FDIC) has also proposed a plan that explicitly prohibits examiners from forcing banks to close accounts based on political or social reasons. JPMorgan Chase stated that it has repeatedly requested various administrations to amend the rules that have led to its current predicament.

Such legal battles are not isolated incidents. The Trump Organization has previously sued Capital One Financial Corp., accusing it of canceling hundreds of accounts after the end of Trump's first term, which harmed its real estate business. Capital One denied any wrongdoing, stating that it did not consider political factors and had provided additional time to transfer assets.

From Allies to Adversaries: The Evolution of a Decade-Long Relationship

This lawsuit has escalated the long-standing grievances between Trump and Dimon. Their relationship has undergone a rollercoaster evolution over the past decade, transitioning from cooperation and mutual criticism to a complete rupture. **

As early as the 2016 election, Jamie Dimon hinted that Hillary Clinton would win, but quickly adjusted his stance after Trump's election, calling on the business community to respect voters' desire for change. Subsequently, Dimon joined Trump's CEO advisory council and urged business leaders at the 2017 Davos Forum to focus on the "very serious people" in the president's team rather than the president's "quips." However, this brief honeymoon period came to an abrupt end after the Charlottesville racial violence incident in 2017, and with the disbandment of the CEO advisory council, Dimon made it clear to employees that "there is no room for ambiguity here."

The conflict between the two publicly escalated at the end of 2018. Dimon claimed at the time that he could defeat Trump in the election because he was "smarter" and "as tough as Trump." Dimon also mocked, "This wealthy New Yorker actually earned his money, not through daddy's gifts." Although Dimon later issued a statement of apology, Trump fiercely retaliated on social media, stating that Dimon lacked talent, "is not smart," and is a "bad speaker" and "nervous wreck."

During the January 6, 2021, Capitol riots, Dimon called for a peaceful transfer of power, and subsequently, several banks, including JPMorgan Chase, temporarily distanced themselves from Trump after the riots, which is the root of the current "de-banking" lawsuit.

As the 2024 presidential campaign heated up, the relationship between the two seemed to temporarily ease. Dimon stated that Trump had "a point" on certain policies, and Trump also mentioned in June that he would consider Dimon for the position of Treasury Secretary if elected, although he denied this statement weeks later.

After winning the election, Trump explicitly stated on social media that he would not invite Dimon to join his cabinet. Just minutes later, Dimon responded at a meeting:

"I haven't had a boss for 25 years, and I'm not looking for one now."

Davos Response and Bilateral Position

Just as the lawsuit news broke, Dimon was concluding his schedule at the Davos World Economic Forum. When faced with media questions about Trump's legal actions, Dimon appeared quite calm.

On the stage in Davos, Dimon attempted to balance his evaluation of Trump's recent actions. He pointed out that some of Trump's actions might be contributing to a stronger NATO and Europe, while others were not. When The Economist's editor pressed executives on whether there was a culture of fear regarding Trump, Dimon candidly responded:

"What do you want me to say? Get ready, this is your headline: I am a globalist."

And on Air Force One, when a reporter asked about the new lawsuit, Trump claimed that Dimon had "begged" him, but did not elaborate on the specific time and reason. Currently, JPMorgan Chase and other institutions involved in the related lawsuit deny any wrongdoing and are prepared to respond to the allegations in court