JPMorgan Has The Right To Protect Its Reputation, And Its Business

Forbes Business

by John Tamny, Contributor

February 25, 2026

AI-Generated Deep Dive Summary

JPMorgan Chase’s decision to close over fifty personal and business accounts tied to former President Donald Trump in February 2021 has sparked debate over whether it was motivated by politics or business strategy. Critics, including Trump himself, argue that the bank acted out of political ideology to distance itself from Trump and his conservative base. However, this perspective misses the broader context: JPMorgan, as the largest U.S. bank, operates in a highly regulated industry where reputational risk is paramount. The decision was likely driven by the need to protect its business franchise from potential fallout linked to Trump’s controversial actions, such as the January 6, 2021, Capitol riot. The timing of the account closures coincided with heightened scrutiny following the events of January 6. Many major institutions severed ties with Trump due to public backlash and concerns about legal or regulatory consequences. The editorial board of the Wall Street Journal even called for Trump’s resignation at the time. JPMorgan’s move can be seen as a strategic response to these risks, rather than an ideological stance. Protecting its reputation was critical for the bank, especially given the influence of federal bureaucracies and the potential impact of a Biden administration investigation into past dealings with Trump. While politics played a role in public perception, JPMorgan’s actions were ultimately about business survival. The bank prioritized protecting its shareholders and franchise over political optics. This decision highlights the challenges large businesses face when navigating a politically charged environment. The case underscores how reputational management is not just about customer relationships but also about avoiding regulatory scrutiny and maintaining investor confidence. For businesses, understanding the intersection of politics and commerce is increasingly essential. JPMorgan’s example demonstrates that high-profile clients like Trump can pose significant risks, even for the most stable institutions. As political tensions continue to influence business decisions, companies must weigh short-term gains against long-term stability. The bank’s decision serves as a cautionary tale about the importance of balancing reputation and risk in an increasingly polarized world.

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Originally published on Forbes Business on 2/25/2026