JPMorgan Chase (JPM) Seeks Federal Transfer of Trump Suit, Disputes CEO Naming; Acknowledges Account Closures

JPMorgan asks federal court to take Trump case, disputes naming of CEO

JPMorgan Chase & Co. is asking a federal court to take over President Donald J. Trump’s $5 billion lawsuit, arguing the inclusion of CEO Jamie Dimon as a defendant is improper and that the matter belongs in federal rather than Florida state court. In filings this week the bank’s lawyers characterize the naming of Dimon as erroneous or unwarranted and seek transfer or removal to address threshold jurisdictional and party‑identification questions under federal procedural rules.

Separately, JPMorgan formally acknowledges in court papers that it closed more than 50 accounts tied to Mr. Trump and affiliated entities in February 2021 after the Jan. 6 Capitol breach. The bank attaches letters, including one dated Feb. 19, 2021, telling the former president and his businesses to find another institution and providing until mid‑April to move balances; JPMorgan frames the steps as routine risk‑management and compliance actions following a reputationally sensitive event and says it worked with clients to transfer remaining funds.

The filings signal a two‑pronged defense: a jurisdictional fight to remove the case to federal court and a substantive position that the bank lawfully exercised account‑termination rights under standard agreements. If the federal forum accepts removal, federal scheduling, discovery limits and dismissal standards will govern what JPMorgan frames as misdirected personal‑liability claims, while the litigation could set broader precedent on how major banks document and defend politically sensitive account closures.

Private credit stress raises broader industry questions

The trademark industry concern about off‑bank lending surfaces as Blue Owl Capital tightens redemptions and sells $1.4 billion of private loan assets, a move that market observers say highlights liquidity strains in the fast‑growing private‑credit and business‑development‑company sectors. Regulators and banks watching non‑bank lenders say the episode underscores risks from yield chasing, opaque credit structures and heavier retail participation in instruments that lack traditional bank protections.

Separately, personnel moves reshuffle talent across finance: Todd Combs, a former Berkshire Hathaway portfolio manager linked to big equity trades, joins JPMorgan Chase, adding asset‑management experience to the bank as it navigates heightened legal and market scrutiny.