Capital One Seeks Dismissal of Trump’s Lawsuit Over Account Closures
The ongoing legal battle between Capital One and the Trump Organization has taken a new turn, as the bank pushes for the dismissal of a lawsuit over the closure of hundreds of accounts. The Trump Organization accuses the bank of politically motivated actions following the January 6 Capitol riot, a claim Capital One firmly denies.
In a recent court filing, Capital One argues that the accounts were closed due to an anti-money-laundering review, and not as retaliation against the Trump family businesses. The bank’s attorneys maintain that the decision was based on “months of analysis and a careful review” by a seasoned financial-crimes team.
The Trump Organization claims that the account closures were politically motivated, suspecting that Capital One sought to distance itself from Donald Trump post-Capitol riot. However, Capital One has denied these allegations, asserting that the closures were based on legitimate financial concerns and not political bias.
The Dispute Over 385 Accounts
The legal case involves around 385 accounts associated with the Trump Organization and various affiliated businesses like a winery and a golf course developer. These accounts, maintained with Capital One for over a decade, were closed in mid-2021, sparking the current legal confrontation.
Capital One has consistently stated that their internal processes, protected under the Bank Secrecy Act, justified the account terminations. The bank further claims that its contract allows for closing accounts “at any time, for any or no reason,” a point not contested by the Trump companies. Judge Roy Altman previously dismissed an earlier version of the lawsuit on similar grounds.
Confidentiality and Legal Rights
Capital One has also faced accusations of defrauding the Trump Organization by not disclosing the reasons behind the account closures. In response, the bank argues that it was under no obligation to provide such explanations and that federal banking secrecy laws would have prevented any disclosure of internal findings related to anti-money-laundering.
Beyond the core legal arguments, a secondary issue involves the sealing of certain documents. Capital One has requested the court to keep certain information confidential, including details protected under the Bank Secrecy Act, which the Trump companies contest in part.
Meanwhile, a similar lawsuit is ongoing against JPMorgan Chase, reflecting broader tensions between Trump-aligned entities and major financial institutions. President Trump has responded by signing an executive order aimed at preventing what he describes as politically motivated ‘debanking.’
For further context, Capital One has previously been involved in legal disputes with Trump, including a 2019 lawsuit where the president attempted to block the bank from releasing financial records to Congress.
