New York —
Capital One and JPMorgan Chase are opting to fight legal claims brought by President Donald Trump and his businesses in court rather than settle disputes that could carry broader consequences for the banks.
Trump and his businesses contend that the lenders closed their accounts for political reasons. Both banks have denied the allegations.
Capital One told a federal court that its decision to close Trump’s accounts came after an internal anti-money-laundering review. The bank has not alleged that Trump or his businesses engaged in money laundering.
The Trump Organization has countered that the anti-money-laundering review was used to justify what it says was a politically motivated decision.
JPMorgan is defending a separate lawsuit Trump filed in January 2026. In that case, Trump accused the bank and CEO Jamie Dimon of shutting his accounts because of political considerations and is seeking at least $5 billion in damages.
Both lenders have consistently maintained that politics did not influence their account decisions.
The cases present substantial risks for the banks. Pursuing the litigation could heighten tensions with the president while potentially requiring the lenders to reveal confidential internal communications during court proceedings.
Yet legal experts and banking industry sources say settling the disputes could bring its own complications.
An agreement could prompt other customers who believe they were improperly denied banking services to pursue comparable claims. That could expose financial institutions to more lawsuits, regulatory scrutiny and demands for compensation.
The Office of the Comptroller of the Currency is investigating roughly 100,000 complaints concerning alleged debanking and banking policies. The Justice Department is separately investigating allegations related to the practice.
Debanking generally describes a financial institution ending or limiting a customer’s access to banking services because of legal, financial or reputational concerns.
The issue has developed into a larger political controversy. Republicans have accused major banks of considering political or ideological factors when determining which customers and industries they will serve.
Trump has increased pressure on the banking industry since returning to the White House.
The banks are relying in part on the broad discretion generally provided in customer agreements governing account closures. Several legal experts told Reuters that those provisions could bolster the lenders’ defenses.
Capital One has said its account closures were carried out by its anti-money-laundering team under bank policies and regulatory guidance. JPMorgan has called Trump’s lawsuit meritless and said it does not close accounts because of political considerations.
Both institutions have also retained prominent law firms for the litigation. JPMorgan is represented by Jones Day, while Capital One is represented by Debevoise & Plimpton.
The potential impact goes beyond the current lawsuits. A settlement could be interpreted as an acknowledgment that accounts were improperly closed, potentially opening the door to years of additional litigation against financial institutions.
Previous financial controversies, including the mortgage crisis and rate-rigging cases, illustrate how settlements involving broader corporate practices can result in subsequent claims.
For Capital One and JPMorgan, continuing to contest the lawsuits is therefore about more than the immediate disputes. Their decision also reflects concerns about how a settlement could affect their wider banking operations.
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