Dimon says Trump’s lawsuit against the banks has “no merit” but he is sympathetic to the concerns

JPMorgan Chase The company’s CEO, Jamie Dimon, said on Monday that although President Donald Trump’s $5 billion lawsuit seeking damages over the closure of his accounts was baseless, he sympathized with the president’s anger over the incident.

Trump accuses JPMorgan and others of closing his accounts for political reasons, in what his conservative supporters described as discrimination.

“The case has no merit,” Dimon told CNBC’s Leslie Baker in an interview on the sidelines of a JPMorgan conference in Miami.

“But I agree with them,” he said. “They have a right to be angry. I would be angry too. Like, why is the bank allowed to do this?”

The answer, according to Dimon, is that banks are “forced” to de-bank individuals to comply with regulators that can penalize companies for bringing reputational risk to the lender.

“We are depriving people of banking services because it causes us legal and regulatory risks,” Dimon said. “It was much easier for the bank to say: ‘I’m not taking the risk, let them switch to another bank.'”

Trump sued Dimon and JPMorgan in January as part of a broader campaign that began after Trump regained office last year. The president or his companies also filed a lawsuit Capital One On bank claims. media regarding alleged defamation; And even the IRS because his tax information was leaked.

In recent court filings, JPMorgan acknowledged that it closed dozens of accounts linked to Trump in the weeks following the Capitol attack on January 6, 2021.

Although there is no single law stating that banks must drop clients due to reputational risk, the industry operates within a framework of regulations and guidelines that make it risky for lenders to meet the needs of certain clients.

The lawsuit against JP Morgan, the world’s largest bank by market value, and its CEO puts Dimon in an awkward position.

It forces Dimon, one of the most outspoken leaders in finance, to toe the line between defending himself and his bank while not incurring the wrath of Trump, who has the power to move markets with a social media post.

Moreover, the financial industry is just beginning to benefit from deregulation efforts by Trump appointees, which would enable banks to achieve more profitability and hold less capital to offset losses.

“There’s a lot of misunderstanding here,” Damon said. “We hope the law will change, and we hope the matter will be resolved.”