Capital One Seeks Dismissal of Trump Organization Lawsuit Over Account Closures

Capital One has filed court documents requesting that a federal judge dismiss the latest version of a lawsuit brought by the Donald Trump Organisation regarding the closure of its bank accounts. The lender stated in Friday’s filing that it is asking for the complaint to be thrown out after reviewing an amended submission from the plaintiffs.

The legal dispute centres on approximately 300 accounts belonging to the Trump Organisation which Capital One terminated in 2021 following a review by its anti-money laundering team. The bank asserts that this action was taken based on transaction patterns identified during months of analysis, noting these activities align with types flagged under federal banking guidance. While Capital One maintains it never accused the organisation of illegal money laundering or publicised the internal process leading to closure, it argues the decision was a contractual matter.

The Trump Organisation had previously alleged that the closures were motivated by political reasons connected to the January 6 Capitol riot rather than legitimate financial scrutiny. In its motion filed Friday, Capital One contends that these claims are unfounded and characterises them as misguided allegations of discrimination kept alive through speculation. The bank emphasised that it never misled the plaintiffs regarding contractually permitted closure decisions.

Capital One noted in its filing that Trump Organisation lawyers have suggested they could explain flagged transactions had they been asked to do so, yet remains unclear how such explanations would alter the determination or prevent closures under their agreement terms. Furthermore, the lender asserted that because of contractual provisions, the plaintiffs were never entitled to receive a specific reason for the closure decision and received none.

The federal court has previously dismissed two earlier versions of this complaint but granted opportunities for amendment each time. The second amended version now before the judge concedes in Capital One’s view that the plaintiffs have not sought reinstatement of accounts and their assertion regarding impaired ability to obtain services elsewhere is entirely backwards. The bank stated the Trump Organisation secured banking services promptly after closure.

This legal action follows similar litigation involving other major financial institutions. President Donald Trump sued JPMorgan Chase in January, alleging trade libel and breach of implied covenant of good faith and fair dealing. He also accused then-CEO Jamie Dimon of violating Florida’s unfair and deceptive trade practices act. JPMorgan denied these claims with lawyers describing the lawsuit as threadbare.

Beyond banking disputes involving political figures, the financial sector continues to navigate regulatory changes and leadership transitions unrelated to this specific litigation. For instance, Mike Lyons is set to assume his new role at Truist on September 1 replacing Bill Rogers who will become executive chair through April 2027. Additionally a tax credit scheduled for implementation in June aims to stimulate de novo banking activity within the state which has not chartered a new bank since 2007.

Capital One maintains that its robust process undertaken by AML professionals with decades of law enforcement experience should withstand scrutiny against claims of pretextual motives. The lender insists these concerns were genuine and based on documented transaction patterns rather than political bias or discrimination.