JPMorgan Chase and Citigroup were among the first major financial firms to say they would temporarily suspend donations to political committees after supporters of President Trump besieged the American Capitol last week.
JPMorgan, which is the largest U.S. bank. In terms of assets, it suspends donations to Republicans and Democrats for at least the next “six months, according to spokesman Steve O’Halloran.
Official Announcement From Corporations
“The country is facing unprecedented health, economic and political problems,” JPMorgan’s head of corporate governance Peter Scher said in a statement to CNBC. “The focus of business leaders, political leaders, civic leaders right now should be on governing and getting help to those who desperately need it most right now. There will be plenty of time for campaigning later.”
Motivated by the January 6 riots in which five people lost their lives, companies including Marriott International and the Blue Cross Blue Shield insurance company said they would stop funding Republican lawmakers who supported efforts to disrupt the election of President-elect Joe Biden’s victory. But the banks, instead of identifying and separating members of the Republican party, have instead moved to suspend contributions to all lawmakers, at least for now.
The moves were part of the larger fallout from a shameful episode that forced American corporations to come to terms with how to respond. Technology companies including Twitter, Facebook and Amazon have made moves to limit the spread of disinformation that could incite more violence.
Donations And Funding
Political action committees pool employee donations and can direct up to $5,000 to a candidate per election, as well as $15,000 annually to any national party committee. Since the money is raised from voluntary employee contributions, the move sidesteps federal laws that prohibit companies from giving money directly to candidates.
Citigroup also suspended PAC contributions to all lawmakers in the first quarter, the bank told employees on Friday in an internal communication.
“We want you to make sure that we do not support candidates who do not respect the law,” Candi Wolff, head of state affairs, said in a statement. “We intend to suspend our contributions this quarter as the country goes through the process of Presidential reforms and we hope that it will emerge from these events strong and cohesive.”
Bank of America spokesman Bill Halldin said the “appalling violent assault on the U.S. Capitol” will factor into donation decisions for the 2022 midterm elections.
Representatives of Goldman Sachs, Morgan Stanley and Wells Fargo did not immediately respond to messages over the weekend.
Synopsis
- JPMorgan, the biggest U.S. bank by assets, is pausing contributions for both Republicans and Democrats for “at least” the next six months, according to spokesman Steve O’Halloran.
- Citigroup is also pausing PAC donations to all lawmakers during the first quarter, the bank told employees Friday in an internal communication.
- Bank of America spokesman Bill Halldin said that the “appalling violent assault on the U.S. Capitol” will factor into decisions for donations ahead of the 2022 midterm elections.
