U.S. banks cut donations to federal candidates, up Democrats' share
ahead of mid-terms
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[October 10, 2022] By
Pete Schroeder
WASHINGTON (Reuters) - U.S. banks are
giving far less to federal candidates this election cycle and increasing
the proportion they are handing to Democrats as they rethink their
political giving, according to a Reuters analysis of data compiled by
the Center for Responsive Politics (CRP) and more than half a dozen
industry officials and lobbyists.
With less than a month to go until the mid-term elections which will
determine control of Congress, commercial banks' political action
committees (PACs) have given roughly $7.4 million to federal candidates,
43% down on the 2020 election cycle and 39% down on the average election
spend in the previous decade, according to the Reuters analysis.
Following the 2007-09 financial crisis when Democrats cracked down on
banks, lenders have typically looked to business-friendly Republicans
for support in Congress.
But while they are getting less cash overall, Democrats have increased
their share of the pie this cycle to 40%, their highest proportion since
the 2010 cycle. And of the top-20 congressional recipients of bank PAC
donations this cycle, 10 are Democrats compared with six in 2020, three
in 2018, and one ahead of the 2016 election. The CRP data draws from
data released by the Federal Election Commission as of Sept. 22.
![](http://archives.lincolndailynews.com/2022/Oct/10/images/ads/current/culligan_sda_FAIR_2022.png)
The shift in giving patterns shows how banks are rethinking their
allegiances amid increased political partisanship. A key turning point
was the Jan. 6, 2021 attack on the Capitol when supporters of Republican
former President Donald Trump forcefully prevent Congress from
certifying Democratic President Joe Biden's election win. Hours later,
147 Republicans voted to overturn Biden's victory, which Trump falsely
claimed was tainted by fraud.
It also suggests the industry is trying to court more Democrats as
Republicans grow angry with lenders for embracing what they say are
liberal causes.
"The vote on the election really caused people to open their eyes a
little bit more...to do a closer evaluation of individuals that a PAC
may have been supporting just because they supported [the industry]in
the past," said James Ballentine, CEO of government relations firm
Ballentine Strategies and until April a top lobbyist for the American
Bankers Association which runs the biggest industry PAC.
To be sure, the party in power commonly enjoys a bounce in donations and
banks are also spreading their bets ahead of a tightening contest, said
Ballentine and the other sources.
Republicans have a 70% chance of winning the House of Representatives
while Democrats are favorites to retain control of the Senate, according
to poll-tracker FiveThirtyEight.com.
Since Jan. 6, many lenders have felt pressure from employees, who fund
the PACs, to reduce giving to Republicans, the sources said.
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![](../images/101022PIX/busine49.jpg)
Rep. Joyce Beatty (D-OH) speaks as
members share the recollections on the first anniversary of the
assault on the Capitol in the Cannon House Office Building in
Washington, U.S. January 6, 2022. Mandel Ngan/Pool via REUTERS/File
Photo
![](http://archives.lincolndailynews.com/2022/Oct/10/images/ads/current/graue_lda_preowned_100122.jpg)
Several banks, including JPMorgan Chase, Citigroup, Bank of America
and Morgan Stanley, paused some or all PAC donations as they
reviewed their strategies, which likely helps account for the
decline in overall spend.
Bank of America and Morgan Stanley have each so far this cycle
donated more to Democrats than Republicans for the first time in
over a decade. Citigroup's contributions are evenly split for the
first time. JPMorgan is still giving more to Republicans, but at the
smallest margin in over a decade.
Spokespeople for the banks either declined to, or did not respond to
requests for, comment.
FEWER ALLIES
Lenders are also under pressure from staff and shareholders to
support lawmakers active on issues beyond finance, such as
addressing the racial wealth gap and education, according to several
sources.
The top Democratic congressional recipient of bank PAC money, for
example, is Joyce Beatty, who chairs the House Financial Services
panel's subcommittee on diversity and inclusion, an issue which
banks have loudly championed.
That trend, combined with some banks shunning election objectors,
has left the industry with fewer Republican allies overall, a
dynamic that was on display when CEOs of the nation's largest banks
appeared before Congress last month. They were skewered by some
Republicans for their policies on doing business with gun companies
and operating in China.
"It's a challenging spot to figure out who your allies are," said
Brian Gardner, chief Washington policy strategist at Stifel
Financial Corp. "The days when the largest banks could rely on
Republicans for some level of defense, I think those days are over."
Nevertheless, banks are still courting Republicans. Nine of the top
10 recipients of industry donations are Republicans, including
Representative Patrick McHenry who is likely to chair the House
finance panel if Republicans win that chamber.
![](http://archives.lincolndailynews.com/2022/Oct/10/images/ads/current/longviewbank_sda_FHI_2022.png)
Spokespeople for Beatty and McHenry did not respond to requests for
comment.
"Banks that are active givers to political campaigns are hedging
their bets," said Camden Fine, the former head of trade group the
Independent Community Bankers of America and political consultant.
(Reporting by Pete Schroeder; editing by Michelle Price and Aurora
Ellis)
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