To The Moon

On 23 Jan 2026, the American business landscape finds itself at a volatile crossroads. Fresh off the TACO boat on Greenland saga, news arrived that Trump has filed a $5 billion lawsuit against $JPMorgan Chase(JPM)$ and its CEO, Jamie Dimon. (see below) This marks a significant escalation in the administration’s war against what it terms "woke capitalism" and the practice of "debanking". Does this action by Trump indicate a wider strategy against US financial sector? Let’s see. The JPMorgan Lawsuit. The “shot across the bow” lawsuit, filed alleges that US #1 bank - JPMorgan Chase closed Trump’s personal and business accounts in early 2021, purely for political reasons, effectively "blacklisting" Trump from the global financial system. Just to be clear, Trump has spent 2025, pushing the "Fair Access to Financial Services" agenda, arguing that banks should not be allowed to deny service based on "reputational risk" related to political or religious views. With the stage set, now comes the lawsuit, I supposed. The "Debanking" Narrative: For the Trump administration, this is more than a personal grievance; it is a test case. The 22 Jan 2026 lawsuit against JPMorgan and Jamie Dimon, represents a personal escalation of the administration’s "anti-debanking" platform. The Allegations: The complaint asserts that the bank closed several accounts with minimal notice, causing significant financial disruption and reputational harm. Most critically, it alleges that Trump was placed on a reputational "blacklist" shared with other banks, effectively ostracizing him from the global financial system. The "Woke" Narrative: The administration frames this as a fight against "woke capitalism," arguing that banks should not have the power to deny service based on political or religious beliefs. The Bank's Defense: JPMorgan maintains the suit is "meritless," stating that accounts are closed only due to legal or regulatory risks, not politics. Below is a summary of what have been said so far: Where the lawsuit was filed was as calculated move also. By filing in Florida, Trump’s legal team is leveraging state laws that specifically prohibit financial discrimination based on political affiliation. Its a legal framework that may not exist in New York or at the federal level. At the same time, the lawsuit coincides with a recent preliminary report from the Office of the Comptroller of the Currency (OCC). In the report, it suggested that several major banks may have improperly refused service to certain industries. The OCC report is used by Trump administration to argue that "debanking" is a systemic problem. While the saga is still being play out, the next likely move will be JPMorgan's formal motion to dismiss, that legal experts expect within the next 30 days. The 10% Credit Card Cap: The JPM lawsuit comes just a week after the President proposed a 10% cap on credit card interest rates, a move that has already caused a sharp rift between the White House and Wall Street. Trump’s proposal is to cap credit card Annual Percentage Rates (APRs) at 10%, down from national average of roughly 21%, has sent shockwaves through Wall Street. Market Reaction US equity markets have responded with a significant sell-off in financial stocks as investors price in a "seismic shift" in bank profitability. JPMorgan Chase (JPM): Shares fell -4.2% immediately following the announcement, despite beating Q4 2025 earnings expectations. $Bank of America(BAC)$ & $Wells Fargo(WFC)$ : Both saw declines between -3.8% and -5%. Specialized pure card issuers like $Synchrony(SYF)$ dropped -10%, as analysts warn the 10% cap could wipe out nearly all earnings for lenders focused solely on credit cards. The $100 Billion ‘Fallout’ Analysts at Vanderbilt University and major bank CFOs estimate that the 10% cap would transfer approximately $100 billion per year from bank revenues directly back to American consumers. While this is a "win" for household liquidity, banks argue it will lead to: Credit Contraction: Banks may stop lending to "subprime" or "near-prime" borrowers, potentially cutting off credit for up to 159 million cardholders. Elimination of Rewards: To offset losses, banks are expected to slash travel points, cash-back programs, and loyalty incentives by an estimated $27 billion. Increased Fees: Consumers may see the return of high annual fees or "no-frills" cards with zero benefits. US Financial Sector, On The Chopping Board ? Since returning to the oval office, Trump 2.0 has been on a litigious rampage since early 2025. Who / What has litigious Trump sued so far ? Energy and Environment. Since April 2025, Trump administration has aggressively moved to block state-level climate initiatives and protect the fossil fuel industry from local litigation. Higher Education and Civil Rights. Trump administration has used (a) federal funding and (b) civil rights investigations as leverage against elite universities; forcing them to kowtow to the rouge president. Health Care Roll Back. Since coming back into power, the Trump administration has rolled back federal health regulations. Legal and Professional Services. The administration has taken unprecedented step of suing or sanctioning specific law firms associated with its political opposition. From the look of things, it certainly appears so ! By targeting the nation’s largest bank, the administration is signaling that it intends to use both litigation and executive oversight to force a "neutrality" on the banking sector that aligns with Trump's populist platform. What Public Thinks ? Critics, point to the timing and nature of these actions as evidence of a "retribution” tour. Focus on (1) personal lawsuits, (2) targeting of specific law firms that represent political opponents, and (3) attempt to seize equity stakes in private corporations, all suggest a shift toward state capitalism rather than a return to free-market greatness. YTD Decline in the Making. Truth be told, since 09 Jan 2026, US banks have been on the slide when Trump first rattled off about the 10% cap on credit card on his propaganda platform - Truth Social. (see below) In his usual style, overtime the persistent ‘moan & groan’ turned aggressive and then erupted uncontrollably. While we may have “missed” subsequent signs as they came and went, Wall Street took notice. (see below) Above is a 2026 year-to-date performances of US sampled banks of JP Morgan, Bank of America and Wells Fargo. Key events and Developments : 9 Jan 2026 : Trump announced on Truth Social that he was calling for a one-year, 10% cap on credit card interest rates, effective on 20 Jan 2026. 12 Jan 2026 : In a “ripped off” rhetoric, public comments, Trump stated that card companies charging 20-30% interest are "in violation of the law" and that he would not allow the American public to be "ripped off". 16 Jan 2026 : White House parrot, Karoline Leavitt affirmed that the 10% cap is a demand, not a request, and that the administration expects credit card companies to comply. 20 Jan 2026 : Deadline set by Trump for “voluntary” compliance passed, with no major credit card companies lowering their rates to 10%. 20 Jan 2026 : Banking trade groups, including US Bank Policy Institute and American Bankers Association, released a joint statement calling the proposal "devastating" for consumers and warned it would reduce credit access. 21 Jan 2026 : Speaking at the World Economic Forum in Davos, Switzerland, Trump shifted tactics and urged Congress to pass legislation to implement a 10% cap for one year, arguing it would help families save for a home. 22 Jan 2026 : JPMorgan CEO Jamie Dimon warned at Davos that a 10% cap would be an "economic disaster" that could restrict access to credit for 80% of Americans, particularly those with lower credit scores. Jan 22, 2026 : It was reported that BAC and $Citigroup(C)$ Citigroup are considering launching new "no-frills" credit cards with 10% APR that meet the demand, rather than altering existing, higher-rate products. More Bad News for Financial institutions. In February 2025, Senate Bill 381 emerged as a bipartisan effort between Senators Bernie Sanders and Josh Hawley. Its purpose is to fulfill Trump’s campaign promise to protect working-class families from predatory 25% interest rates while banks were borrowing from the Federal Reserve at much lower costs. The bill has not been approved by US Congress. The bill remains in the very early stages of the legislative process. It was referred to the Senate Committee on Banking, Housing, and Urban Affairs and has not yet been brought to a floor vote in either the Senate or the House of Representatives. While the bill has high-profile bipartisan sponsors like Sanders and Hawley, it faces significant opposition from the banking lobby and more traditional fiscal conservatives in Congress who worry about the systemic risks mentioned above. Is JPM “Doomed” ? My viewpoints only. I think JPM is unlikely to experience significant negative pressure despite the Trump lawsuit. This as US market has already priced in this development and the company maintains strong fundamentals. JPM stock has shown resilience, trading intraday at $303.63 on Fri, 23 Jan 2026, up +0.53% from the previous day's close. Market's muted response suggests investors view this as a manageable legal issue rather than a fundamental threat to the bank's operations. JP Morgan’s financial metrics remain strong: A P/E ratio of 15.17. Dividend yield of 5.8%. ROE of 16.13%. Analyst sentiment remains positive. A poll of 27 analysts showed: 14 “Buy” recommendations versus only 1 “Sell” recommendation. A mean target price of $337.58. This represents approx. +13.38% upside potential based on 23 Jan 2026 - JPM’s closing price of $297.72/share. Options market data shows a relatively low implied volatility of 22.68% and a call/put ratio of 0.95, indicating balanced market expectations without significant bearish positioning. Overall, the bank's historical performance through various regulatory challenges demonstrates institutional resilience, and current capital flows show mixed but not overwhelmingly negative sentiment Technical Analysis. What is JPM’s technical analysis telling us ? (see below) As of Fri, 23 Jan 2026 Simple Moving Averages (SMA) The moving average profile for JPM currently reflects a "bearish” alignment, where shorter-term averages have fallen below longer-term ones. 20-Day SMA: JPM is trading below its 20-day average ($318.88). This indicates a strong short-term bearish momentum as the price fails to stay above its most recent monthly trend. 50-Day SMA: JPM is currently positioned below its 50-day SMA ($313.99). For many traders, this crossover serves as a confirmation that medium-term trend has shifted from bullish to defensive. 200-Day SMA: The long-term 200-day average is around $290.90. As of Fri, 23 Jan 2026, JPM is still trading above the "golden” line, technically its still “bullish” for long-term. MACD. With the MACD line (-4.16) sitting below both zero line and its signal line (-0.89), the negative divergence (-3.27) indicates strong downside momentum. JPM is currently in a down leg with no MACD‑based sign yet of an imminent bullish reversal. Analysts will be watching for a move back toward the zero line as an early sign of stabilization. RSI. JPM’s 14-day RSI is currently at 34.09. This value is nearing the 30.00 threshold, that is the traditional marker for "oversold" conditions. While a reading of 34 suggests the stock is under heavy selling pressure, it has not yet reached the extreme exhaustion point that typically triggers a "bounce" or relief rally. More importantly, the RSI curve has been in a falling trend since early January 2026, acting as a leading indicator that the price might continue to test lower support levels before finding a floor. JPM’s Friday closing price brings the stock back to its July 2025, September 2025 and late October 2025 period. Each time, the stock managed to bounce back and break the $300 resistant. With a sticky inflation and a 2026 GDP forecasted to be around 2.3%, the probability of a JPM rebound is “high”. The Winner ? From a legal viewpoint, it is likely that JP Morgan may come up top. However, politically Trump may have the ‘upper’ hand because the lawsuit serves as a powerful platform for his campaign against "weaponized" banking. Even if the case is dismissed, it solidifies Trump’s narrative of being a victim (?) of the "establishment. A legal victory for JPMorgan is almost mandatory to preserve the banking sector's right to manage risk independently. For myself, the lawsuit-driven dip toward the $294–$297 support level offers a strategic entry point into a bank with resilient fundamentals. What do you think ? Remember to check out my other posts. (See below). Help to Repost ok, Thanks. MSFT & ORCL, best stocks for Newbies? Can't Be ! No Cuts & Sticky Inflation, What to invest ? MP Materials: $100 Target, Back in Sight ? Do you think JPM will crater under pressure from the US government’? Do you think Trump will go after other US banks, based on outcome of the JPM lawsuit? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents