Jamie Dimon, CEO of JPMorgan Chase & Co., second left, listens during a hearing of the House Financial Services Committee in Washington, DC, USA, on Wednesday, April 10, 2019.
Andrew Harrer | Bloomberg | Getty Images
JPMorgan Chase and Citigroup were among the first major financial corporations to say they would suspend donations from political action committee after supporters of President Trump besieged the US Capitol last week.
JP O’Malloran, JPMorgan, the largest U.S. bank in assets, will suspend contributions for both Republicans and Democrats for a minimum of the next six months. The bank in New York will use that time to consider possible changes to its political donation strategies.
“The country is facing unprecedented health, economic and political crises,” Corporate Responsibility Peter Scher of JPMorgan said in a statement to CNBC. ‘The focus of business leaders, political leaders, civic leaders must now be on government and get help for those who currently need it most. There will be plenty of time for a campaign later. ‘
Driven by January 6 riots in which five people lost their lives, companies including Marriott International and the Blue Cross Blue Shield Insurance Group have said they will stop giving money to Republican lawmakers who support the certification of the elect President Joe. Biden’s victory. But banks, rather than targeting and potentially alienating members of the Republican Party, have instead moved to stop donations to all lawmakers, at least for now.
The moves were part of the larger aftermath of a scandalous episode that forced U.S. companies to compare how they react. Technology companies, including Twitter, Facebook and Amazon, have moved to limit the spread of disinformation that could incite more violence.
Political action committees combine employee donations and can send up to $ 5,000 per candidate per election, as well as $ 15,000 per year to any national party committee. As the money is raised from voluntary contributions from employees, the move violates federal laws that prohibit companies from giving money directly to candidates.
Citigroup will also suspend PAC donations to all lawmakers during the first quarter, the bank said in an internal statement to employees on Friday.
“We want you to be assured that we will not support candidates who do not respect the rule of law,” Candi Wolff, head of global government affairs, said in the memo. “We plan to interrupt our contributions during the quarter as the country goes through the presidential transition and hopefully emerges stronger and more united from these events.”
Bank of America spokesman Bill Halldin said the “horrific violent assault on the US Capitol” would contribute to donations for the 2022 midterm elections.
Representatives of Goldman Sachs, Morgan Stanley and Wells Fargo did not immediately respond to messages over the weekend.
This story unfolds. Please come and check for updates.