Trump Plans to Sue JPMorgan for Abrupt Account Closure After Capitol Riot
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Benzinga
- Legal Action Threat: Trump announced plans to sue JPMorgan within two weeks for allegedly closing his accounts improperly after the January 6, 2021 Capitol riot, involving the relocation of hundreds of millions of dollars, highlighting his strong dissatisfaction with financial institutions.
- Political Motivation Allegation: Trump claims the account closure was influenced by the Biden administration; while JPMorgan denies closing accounts for political reasons, it did not refute that reputational risk may have influenced decisions, reflecting ongoing tensions between the financial sector and politics.
- Interest Rate Cap Proposal: Concurrently, the White House proposed capping credit card interest rates at 10%, with JPMorgan executives warning that this could limit access to credit and adversely affect consumers, illustrating the complex interplay between policy and financial institutions.
- Potential Legal Implications: Trump's lawsuit could set a precedent for how banks handle politically sensitive clients in the future, further intensifying his conflict with the financial sector, particularly in the aftermath of the Capitol riots, which may impact operational strategies of financial institutions.
Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JPM is 344.31 USD with a low forecast of 305.00 USD and a high forecast of 370.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
11 Buy
6 Hold
0 Sell
Moderate Buy
Current: 309.260
Low
305.00
Averages
344.31
High
370.00
Current: 309.260
Low
305.00
Averages
344.31
High
370.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
