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 Representatives from Citigroup, JPMorgan, Goldman Sachs and Bank of
America, have met to discuss ways to urge Democrats, including
Warren and Ohio Senator Sherrod Brown, to soften their party's tone
toward Wall Street, sources familiar with the discussions said this
week.
Bank officials said the idea of withholding donations was not
discussed at a meeting of the four banks in Washington but it has
been raised in one-on-one conversations between representatives of
some of them. However, there was no agreement on coordinating any
action, and each bank is making its own decision, they said.
The amount of money at stake, a maximum of $15,000 per bank, means
the gesture is symbolic rather than material
Moreover, banks' hostility toward Warren, who is not a presidential
candidate, will not have a direct impact on the presumed Democratic
front runner in the White House race, Hillary Clinton. That's
because their fund-raising groups focus on congressional races
rather than the presidential election
Still, political strategists say Clinton could struggle to raise
money among Wall Street financiers who worry that Democrats are
becoming less business friendly.
The tensions are a sign that the aftermath of the 2008 financial
crisis - the bank bailouts and the fights over financial reforms to
rein in Wall Street - are still a factor in the 2016 elections.
Citigroup has decided to withhold donations for now to the
Democratic Senatorial Campaign Committee over concerns that Senate
Democrats could give Warren and lawmakers who share her views more
power, sources inside the bank told Reuters.
The Massachusetts senator's economic populism and take-no-prisoners
approach has won her a strong following among liberals who raised
300,000 signatures for a petition urging her to run for the White
House in 2016.
JPMORGAN MET DEMOCRATIC OFFICIALS
Citi spokeswoman Molly Meiners declined to comment specifically on
the Warren issue, saying the bank's fund-raising political action
committee (PAC) "contributes to candidates and parties across the
political spectrum that share our desire for pro-business policies
that promote economic growth."
JPMorgan representatives have met Democratic Party officials to
emphasize the connection between its annual contribution and the
need for a friendlier attitude toward the banks, a source familiar
with JPMorgan's donations said. In past years, the bank has given
its donation in one lump sum but this year has so far donated only a
third of the amount, the source said.
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Goldman, which already made its $15,000 donation for the year, took
part in the Washington meeting between the four banks to talk about
anti-big bank rhetoric of some Democratic lawmakers like Warren but
has not had any discussions about withholding money, a source close
to the bank said.
"We will continue working cooperatively with members of Congress,
regulators and the industry to foster constructive discussions
around policy questions," said Andrew Williams, a Goldman spokesman.
Bank of America is not coordinating with other banks on when and how
much to give, according to a source familiar with the bank's
thinking. It has not yet sent in its check.
"Our decision to contribute will be driven more by the fact that
many members of both parties understand the important role we play
in driving the real economy and serving customers across the
country," said a spokesman, Larry Di Rita.
JPMorgan spokesman Andrew Gray said the bank had "always believed in
the importance of engaging constructively with our public
officials."
Spokesmen for the Democratic Senatorial Campaign Committee, Warren
and Senate Democratic leader Harry Reid all declined to comment.
Warren, a former Harvard Law professor who joined the Senate Banking
Committee after taking office in 2013, has accused big banks and
other financial firms of unfair dealings that harm the middle class
and help the rich grow richer.
In a Dec. 12 speech, she mentioned Citi several times as an example
of a bank that had grown too large, saying it should have been
broken apart by the Dodd-Frank financial reform law.
In January, Warren angered Wall Street when she successfully blocked
the nomination of a banker Antonio Weiss to a top post at the
Treasury Department. She argued that as a regulator he would likely
be too deferential to his former Wall Street colleagues.
(Editing by Ross Colvin)
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