Bank requests court to dismiss Trump's lawsuit over account termination
Capital One Challenges Trump Organization's De-Banking Lawsuit
The ongoing legal battle between the Trump Organization and Capital One is facing a significant hurdle, as the bank has filed a motion to dismiss the lawsuit accusing it of politically motivated de-banking.
The lawsuit, filed in March, alleges that Capital One wrongfully closed some 300 accounts belonging to the Trump Organization. However, Capital One argues that the Trump Organization's claims are generalized, lacking factual and legal support, and do not prove any political motive for the account closures.
According to the bank's motion to dismiss, the Trump Organization's complaint fails to present sufficient evidence to support its assertions against Capital One. The bank states that it has not provided a reason for terminating the accounts, and the contract governing the accounts allows Capital One to close an account for any reason at its discretion, and without any notice.
The current status of the lawsuit is that Capital One has won a court order to pause the usual evidence-sharing process, delaying the Trump Organization's ability to obtain internal documents from Capital One about the account closures. The Trump Organization must respond to Capital One’s motion to dismiss by July 25, 2025.
In addition, Capital One has not been mentioned as having purchased licensing rights for commercial or retail operations, and it has received regulatory approvals from the Federal Reserve and the Office of the Comptroller of the Currency (OCC) regarding its $35.3 billion acquisition of Discover.
The Trump Organization and Eric Trump have argued that they were de-banked because of President Trump's political views, but Capital One denies any improper political motive for closing the Trump-related accounts.
The issue of de-banking has been brought to the fore by Trump, who confronted Bank of America CEO Brian Moynihan about it during a virtual appearance in January. Moynihan and JPMorgan CEO Jamie Dimon each responded by stating their financial institutions bank everybody and don't de-bank customers for political reasons.
Lawmakers have also taken up the issue, pushing related legislation. However, the Trump Organization's lawsuit asserts claims in various states' consumer protection or consumer fraud laws, but fails to connect these to any party or relevant states' laws or interests.
Todd Baker, a senior fellow at Columbia University's Richman Center for Business, Law and Public Policy, believes the Trump Organization's lawsuit should be dismissed due to weak claims. Almost four years after initial communication with the Trump Organization about the account closures, the Trump Organization filed the lawsuit.
Capital One gave the Trump Organization three months' notice to find new banking services after deciding to close "many, but not all," of the organization's deposit accounts. By October 2021, the Trump company had moved or closed all of the accounts with Capital One.
The Trump Organization's lawsuit against Capital One is ongoing, but facing obstacles as Capital One seeks a federal judge's dismissal of the case. The case reflects the latest known developments, with Capital One challenging the lawsuit's basis and courts limiting the Trump Organization's discovery efforts for now.
- The ongoing controversy surrounding the Trump Organization's de-banking by Capital One has sparked discussions in various aspects of general-news, including politics and business, as the legal battle over the closed accounts alleges political motives.
- The Trump Organization's acquisition of banking services has been limited to Capital One, as there’s no record indicating they purchased licensing rights for commercial or retail operations from other financial institutions, according to the context of the ongoing lawsuit.
