Trump's $5bn Lawsuit Against JP Morgan Marks Collapse of Alliance with Jamie Dimon
Donald Trump has launched a $5bn (£3.7bn) lawsuit against JP Morgan and its chief executive, Jamie Dimon, alleging the bank unfairly closed his accounts for political reasons following the 6 January Capitol riots in 2021. This legal action signifies a dramatic fall from grace for a relationship that began with mutual admiration during Trump's early presidency.
From Corporate Courtship to Legal Confrontation
In the weeks after Trump's shock election win in 2016, corporate America scrambled to align with the new populist leader. Business titans, including General Motors' Mary Barra and Disney's Bob Iger, joined an advisory council to shape his pro-growth policies. Among them was Jamie Dimon, the chair and CEO of JP Morgan, America's largest bank, whose presence lent Trump nascent political credibility on Wall Street.
Dimon, a lifelong Democrat, was feted for steering JP Morgan through the 2008 banking crisis to enviable financial success. Rumours swirled that he might serve in Trump's administration, though he reportedly declined an offer to lead the US Treasury. Despite this, the pair maintained surprisingly good terms, with Dimon stating he would "try to help any president of the US because I'm a patriot."
Tensions Rise Over Policy and Personal Remarks
The relationship began to sour early in Trump's first term. In 2017, Dimon tolerated Trump's controversial withdrawal from the Paris climate agreement but drew a line after Trump failed to denounce white supremacists involved in the violent Charlottesville rally. This led to the disbanding of the economic advisory council, with Dimon criticising Trump for tearing people apart rather than bringing them together.
Personal tensions escalated in late 2018 when Dimon, addressing speculation about his presidential ambitions, claimed he could beat Trump because he was "as tough as he is, I'm smarter than he is" and had earned his wealth rather than inheriting it. Trump retaliated online, calling Dimon a "poor public speaker & nervous mess" lacking aptitude.
Common Ground Gives Way to Capitol Fallout
Despite friction, Dimon praised Trump's tax cuts and nascent China trade deal. However, the Capitol riots in 2021 prompted swift condemnation from Dimon and other business leaders. Trump claims this led to the unfair closure of his JP Morgan accounts, a move the bank defends as mitigating legal or regulatory risks, while dismissing the lawsuit as meritless.
This dispute echoes the Nigel Farage and NatWest row in the UK, which resulted in the bank's chief executive departing. For Trump and Dimon, the rift deepened during Trump's second presidential run, with Trump labelling Dimon a "highly overrated Globalist" and expressing relief at no longer having to "live with him."
Broader Policy Clashes and Financial Implications
Dimon has warned against Trump's undermining of Federal Reserve independence and chair Jerome Powell, supporting Powell amid a controversial Department of Justice investigation. He criticised Trump's proposal to cap US credit card interest rates at 10%, calling it a potential "economic disaster" that threatens JP Morgan's profit margins.
At the World Economic Forum in Davos, Dimon highlighted risks from AI and suggested the US had become "less reliable" under Trump. Trump, in turn, has attacked Powell as a "bad Fed person" and speculated Dimon prefers higher interest rates for personal gain.
The lawsuit marks a boiling over of long-simmering tensions, with Trump's legal team alleging political bias, while JP Morgan maintains its actions were prudent. As both billionaires navigate this high-stakes conflict, their once-affable alliance appears irreparably broken, reflecting broader divisions in American politics and finance.
