Jamie Dimon, CEO of JPMorgan Chase & Co., second from left, listens during a House Financial Services Committee hearing in Washington, DC, USA, on Wednesday, April 10, 2019.
Andrew Harrer | Bloomberg | Getty Images
JPMorgan Chase and Citigroup were one of the first major financial companies to say they will pause political action committee donations after President Trump’s supporters laid siege to the U.S. Capitol last week.
JPMorgan, the largest U.S. bank by assets, is halting contributions from both Republicans and Democrats for “at least” the next six months, according to spokesman Steve O’Halloran. The New York-based bank will take advantage of this time to consider possible changes in its political donation strategies.
“The country is facing unprecedented health, economic and political crises,” Peter Scher, head of corporate responsibility at JPMorgan, said in a statement provided to CNBC. “Right now, business leaders, political leaders and civic leaders should focus on governing and getting help for those who need it most desperately. There will be plenty of time to campaign later.”
Stimulated by the January 6 riots in which five people lost their lives, corporations such as Marriott International and insurance group Blue Cross Blue Shield have said they would stop giving money to Republican lawmakers who supported efforts to disrupt the president’s certification. elect Joe Biden’s victory. But the banks, instead of targeting members of the Republican party and potentially alienating them, have decided to stop donations to all lawmakers, at least for now.
The moves were part of the most important consequences of an embarrassing episode that forced American companies to accept the way they responded. Technology companies like Twitter, Facebook and Amazon have taken steps to limit the spread of misinformation that could incite more violence.
Political action committees group employee donations and can direct up to $ 5,000 to a candidate for each election, as well as $ 15,000 a year to any national party committee. Because the money is raised from employees ’voluntary contributions, the measure ignores federal laws that prohibit companies from giving money directly to candidates.
Citigroup is also pausing CAP donations to all lawmakers during the first quarter, the bank told employees in an internal communication on Friday.
“We want you to be assured that we will not support candidates who do not respect the rule of law,” said Candi Wolff, the world government’s head of affairs. “We intend to pause our contributions during the quarter as the country goes through the presidential transition and we expect it to emerge from these stronger and more united events.”
Bank of America spokesman Bill Halldin said the “terrible violent attack on the U.S. Capitol” will take into account donation decisions for the 2022 midterm elections.
Representatives from Goldman Sachs, Morgan Stanley and Wells Fargo did not immediately respond to messages over the weekend.
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