JPMorgan freezes donations to Republicans who contested 2020 election
Send a link to a friend
[June 07, 2021] By
Pete Schroeder
WASHINGTON (Reuters) - JPMorgan Chase & Co
will resume making political donations to U.S. lawmakers but will not
give to Republican members of Congress who voted to overturn President
Joe Biden's election victory, according to an internal memo on Friday
seen by Reuters.
The country's largest lender was among many corporations that paused
political giving following the deadly Jan. 6 Capitol riots when
supporters of former president Donald Trump tried to stop Congress from
certifying the election.
Just hours later, 147 Republicans, the vast majority of them in the
House of Representatives, voted to overturn the Electoral College
results which Trump falsely claimed were tainted by fraud.
Following a review, JPMorgan will this month resume giving through its
Political Action Committee (PAC) but will continue its freeze on
donations to a "handful" of the 147 lawmakers whom it had previously
supported, the bank said.
The pause will last through the 2021-2022 election cycle, which includes
November's midterm elections, after which JPMorgan will review whether
to resume contributions to the lawmakers concerned on an individual
basis, it said.
"This was a unique and historic moment when we believe the country
needed our elected officials to put aside strongly held differences and
demonstrate unity," the bank wrote of the Jan. 6 vote to certify Biden's
win.
Also on Friday, Citigroup said it was resuming PAC contributions but did
not specify how it would treat the lawmakers who tried to block Biden
taking office.
Citigroup said it would evaluate whether to give to all lawmakers
case-by-case based on a new set of criteria which includes "character
and integrity" and "a commitment to bipartisanship and democratic
institutions."
JPMorgan noted that its PAC is an important tool for engaging in the
political process in the United States. PACs are political committees
organized for the purpose of raising cash to support or in some cases
oppose election candidates.
"Democracy, by its nature, requires active participation, compromise,
and engaging with people with opposing views. That is why government and
business must work together," JPMorgan wrote.
As part of its revamped spending strategy, the bank will also expand
donations beyond lawmakers who oversee financial matters to those active
on issues the bank considers "moral and economic imperatives for our
country," such as addressing the racial wealth gap, education and
criminal justice reform.
[to top of second column] |
People walk by the JP Morgan & Chase Co. building in New York in an
October 24, 2013 file photo. REUTERS/Eric Thayer/Files
Since the initial January backlash, corporations have been grappling https://www.reuters.com/article/uk-usa-politics-republican-donations-ins-idUKKBN2B119B
with how to resume PAC spending, seen by lobbyists as important for gaining
access to policymakers, without alienating other stakeholders, including their
employees who fund the PACs.
Other big financial companies that paused donations have slowly resumed
spending. Morgan Stanley's PAC resumed https://www.reuters.com/article/us-morgan-stanley-pac/morgan-stanleys-pac-resumed-donations-weeks-after-capitol-riot-pause-idUSKBN2BB2B3
donations to some lawmakers in February, while the American Bankers Association
PAC, one of the biggest in the country, started giving again in March, federal
records show.
While JPMorgan did not name lawmakers in its memo, the bank's new policy risks
alienating Republicans with sway over banking policy, some of whom are already
angered by its active stance on issues like climate change and racial equity.
Of the 147 lawmakers, JPMorgan gave $10,000 each to House finance committee
members Blaine Luetkemeyer and Lee Zeldin, and House Republican leader Kevin
McCarthy, among others, during the 2019-2020 election cycle, according to the
Center for Responsive Politics (CRP). Representatives for the lawmakers did not
respond to requests for comment.
All told, JPMorgan's PAC gave nearly $1 million to federal candidates and
committees backing candidates during the 2019-2020 election cycle, according to
CRP.
Of the $600,300 it gave to federal candidates, nearly 60% went to Republicans
and the rest to Democrats, according to the CRP data, a mix that is likely to
swing further to the left as the bank supports a broader range of social and
economic issues.
Commercial banks overall have ramped up political spending in recent years,
dishing out $14.6 million to federal candidates in the 2020 cycle, the second
highest amount since 1990, the data shows.
Following the 2008 financial crisis, that mix favored Republicans but in recent
years banks have increased spending on Democrats as they look to rebuild
bipartisan support in Congress.
(Reporting by Pete Schroeder; Editing by Michelle Price and Alistair Bell)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |