In America, the fundamental right to access banking services and the growing tension over political interference in financial decisions have come into sharp focus, thrust into the spotlight by a high-profile legal battle between the Trump Organisation and Capital One Financial Corp.
Image: Saul Loeb / AFP
The Trump Organisation, spearheaded by the Donald J. Trump Revocable Trust and Eric Trump, has launched legal action against Capital One Financial, filing a lawsuit on Friday in Florida’s Eleventh Judicial Circuit Court in Miami-Dade County, according to US media outlets.
The suit accuses the Virginia-based bank of abruptly shutting hundreds of accounts linked to the Trump business empire in 2021, claiming the move was politically motivated rather than grounded in legitimate business rationale. The plaintiffs assert that the closures inflicted “considerable financial harm and losses” and disrupted their access to banking services.
According to the complaint, the Trump Organisation had enjoyed a decades-long relationship with Capital One, with millions of dollars held across numerous accounts. On March 8, 2021, Capital One allegedly informed the plaintiffs - without prior notice or justification - that their accounts would be terminated effective June 7, 2021.
This debanking battle isn’t unique to the US. In South Africa, Dr Iqbal Survé, a prominent businessman and chairman of the Sekunjalo Group, is waging a similar fight against financial institutions he accuses of targeting his companies for political and racial reasons.
Survé, who is also the chairman of Independent Media, one of the country’s largest news outfits, claims banks have unjustly closed accounts linked to his businesses, threatening thousands of jobs and stifling voices that challenge the establishment. His struggle mirrors the Trump Organisation’s, highlighting a global debate over banking access and political influence.
According to CNN and CNBC, the bank provided no recourse, remedy, or alternative, leaving the Trump entities struggling to manage their finances. The named plaintiffs include the Donald J. Trump Revocable Trust, DJT Holdings, DJT Holdings Managing Member, DTTM Operations, and Eric Trump, son of former US President Donald Trump.
The Trump Organisation contends that Capital One’s decision stemmed from “political and social” factors, specifically a desire to distance itself from President Trump and his conservative stance following the end of his first term in January 2021.
“Plaintiffs have reason to believe that Capital One’s unilateral decision came about as a result of political and social motivations and Capital One’s unsubstantiated, ‘woke’ beliefs,” the lawsuit states. It further alleges that the bank’s actions are part of a wider industry pattern of “de-banking” consumers due to conflicting political views, describing it as a “systemic, subversive industry practice” designed to pressure the public into shifting their ideologies.
The account closures followed the January 6, 2021 riot at the US Capitol by Trump supporters, an incident preceded by the former president’s repeated false claims of winning the 2020 election. Other financial institutions, including Deutsche Bank and Signature Bank, also cut ties with Trump in early 2021.
At the time, the Trump Organisation was under scrutiny from multiple legal probes, including civil and criminal investigations by the Manhattan District Attorney’s Office and the New York Attorney General’s Office. In July 2021, two Trump Organisation entities were charged with tax fraud and later convicted. In 2023, a New York judge ruled the Trumps liable for fraud in a civil case, imposing a $454 million (R8.2 billion) judgement, which is currently under appeal.
The lawsuit seeks a declaratory judgement that Capital One improperly terminated the accounts, alongside punitive and other financial damages for what it terms “the devastating impact” on the Trump companies’ ability to transact and access funds.
Eric Trump, who manages the organisation with his brother Donald Trump Jr., declared, “The decision by Capital One to ‘debank’ our company, after well over a decade, was a clear attack on free speech and free enterprise.” He estimated damages in the “millions of dollars.”
Solicitor Alejandro Brito, representing the plaintiffs, told CNBC the Trump Organisation is contemplating further lawsuits against other financial institutions for similar conduct, labelling Capital One’s actions “an attack on free speech.”
Capital One refuted the claims, CNBC reported, “Capital One has not and does not close customer accounts for political reasons.” The bank declined to elaborate further on the ongoing litigation.
BUSINESS REPORT
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