US President Donald Trump has filed a $5 billion lawsuit against JPMorgan Chase and its chief executive Jamie Dimon, alleging the bank unlawfully closed his accounts for political reasons following the January 2021 Capitol riot.

The lawsuit, filed in Miami on Thursday, accuses America's largest bank of placing Trump, his businesses and family members on a blacklist after the 6 January attack. Trump's lawyers claimed JPMorgan needed to distance itself from the president and his conservative views, alleging the bank believed "the political tide at the moment favoured doing so". The complaint seeks damages for what it describes as considerable financial and reputational harm.

JPMorgan rejected the allegations, stating the suit has no merit. The bank said it does not close accounts for political or religious reasons but only when they create legal or regulatory risk for the company. A spokesperson added that rules and regulatory expectations often necessitate such closures, and the bank has asked both current and previous administrations to change these regulations.

The legal action marks a significant escalation in Trump's claims that US financial institutions treat conservatives unfairly. Naming Dimon personally opens a dramatic rift between the president and Wall Street's most powerful banker. Relations between the two have already frayed in recent weeks, with Dimon criticising Trump's proposal to cap credit card interest rates at 10 per cent as a potential "economic disaster" during the World Economic Forum in Davos.

Dimon, who received a $43 million compensation package last year, also warned last week that Trump's attacks on Federal Reserve chairman Jerome Powell risked driving up inflation. Trump responded by saying Dimon was wrong and "it's fine what I'm doing".

The lawsuit follows a December report from banking regulator the Office of the Comptroller of the Currency finding that nine major US banks, including JPMorgan, had made "inappropriate distinctions" among customers. Industries affected included oil and gas companies, cryptocurrency firms and firearms manufacturers, with many banks publicly disclosing restrictive policies tied to environmental, social and governance goals.

Trump has accused several lenders of debanking, including Bank of America. Last March, the Trump Organisation sued Capital One over the closure of more than 300 accounts, claiming the bank acted unjustifiably for political reasons after January 6.

The president's campaign against alleged debanking mirrors a similar controversy in the UK. NatWest chief executive Dame Alison Rose resigned in 2023 after admitting she was the source of an inaccurate BBC story about why Reform UK leader Nigel Farage had been debanked. Farage threatened legal action and later settled with the bank.

JPMorgan shares closed up 0.4 per cent in New York following the lawsuit's filing.

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