NEW YORK, Jan 23, 2026, 10:46 AM EST — Regular session
Shares of JPMorgan Chase & Co (JPM) dropped 1.7% to $298.45 in Friday’s morning session after President Donald Trump filed a $5 billion lawsuit accusing the bank and CEO Jamie Dimon of politically motivated “debanking,” or closing accounts. The stock began the day at $302, briefly dipping to $298.38. JPMorgan pushed back, calling the lawsuit baseless and stating it closes accounts only when there’s legal or regulatory risk. Reuters
The legal blow comes as Trump pushes Congress to cap credit card interest rates at 10% for a year, hitting a key revenue source for major banks. At the World Economic Forum in Davos, Dimon called the move an “economic disaster” that would cut off credit for 80% of Americans. Brian Jacobsen, chief economic strategist at Annex Wealth Management, said it’s “highly unlikely we’ll see a 10% cap put in place anytime soon.” Reuters
JPMorgan is taking a more aggressive stance in wealth management. Edmund Cohen, head of pensions and wealth products, revealed in an internal memo that the bank has finalized the purchase of UK pensions tech platform WealthOS. The plan includes integrating its UK and Sri Lanka teams into the operation to enhance its pensions services via J.P. Morgan Personal Investing.
Rivals are plotting their own responses if Washington moves forward. Bank of America is mulling new credit cards capped at a 10% rate, with Citigroup exploring similar offerings, according to a source familiar with the situation. This comes after the White House provided little clarity on how any rate cap would actually be enforced.
Bank stocks slipped broadly, dragging the KBW Nasdaq Bank Index down roughly 1.4% during the session.
Investors are watching to see if the lawsuit fades quickly or sparks a drawn-out battle over banks’ customer screening and reputational risk controls. Moves by regulators to adjust standards in either direction could send shockwaves through the industry.
The road ahead is far from clear. A court might dismiss the case quickly, or it could drag on through discovery, leaving Dimon and the bank caught in a political storm. A harsher ruling—like new restrictions on card fees or account closures—would strike earnings more sharply than any legal bills.
Federal Reserve officials meet next week on Jan. 27-28, with their policy decision set for 2 p.m. EST on Jan. 28, followed by a press briefing half an hour later. Investors watch rate guidance closely—it shapes forecasts for banks’ lending margins and loan demand.
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