JPMorgan Chase & Co. will resume political donations to U.S. lawmakers but will not give Republican lawmakers who voted to oust President Joe Biden a victory, an internal memo seen by Reuters on Friday said.
The bank was among a number of corporations that stopped political prisoners after the deadly Capitol riots on January 6, when supporters of former President Donald Trump tried to block congressional elections.
Hours later, 147 Republicans, the overwhelming majority in the House of Representatives, voted to overturn the results of the Electoral College, which Trump falsified.
Following the review, the country’s largest lender will resume its provision through its Political Action Committee (PAC) later this month, but will continue to freeze its donations to a “storm” of 147 lawmakers it has previously backed.
The break will be in the 2021-2022 election cycle, which includes the November midterm elections, after which JPMorgan will reconsider whether it will resume payments to lawmakers interested on an individual basis.
“This is a unique, historic moment when we believe that the country needs our elected officials to put aside their differences and show unity,” the bank wrote in a January 6 vote to confirm Biden’s victory.
JPMorgan noted that its PAC is a powerful tool for engaging in political processes in the United States. PACs are political committees set up to raise funds to support candidates or, in some cases, to oppose them.
“Democracy by its very nature requires active participation, compromise, communication with people with opposing views. That’s why government and business need to work together, “JPMorgan wrote.
As part of its updated spending strategy, the bank will also expand its donations beyond lawmakers who oversee financial assets to assets that the bank considers “our country’s moral and economic imperatives,” such as racial segregation, education, and criminal justice. solution: reform
Since the initial response in January, corporations have been working on how to resume PAC spending, which lobbyists see as a possible policy for accessing developers without alienating other stakeholders, including those who fund their PACs.
The PAC of the American Bankers Association, one of the largest in the country, resumed donation in March, federal records show.
Although JPMorgan did not mention in its memorandum that it was a legislator, the bank’s new policy threatens to alienate Republicans on banking policy, some of whom are already angry at its proactive stance on climate change and racial justice.
According to the Center for Responsible Policy (CRP), out of 147 lawmakers, JPMorgan has given $ 10,000 to House Finance Committee members Blaine Lutkemeyer, Lee Eldin, and House Republican Leader Kevin McCarty during the 2019-2020 election cycle. Lawmakers did not immediately respond to requests for comment.
According to all, JPMorgan’s PAC has provided nearly $ 1 million to federal candidate և committees that support candidates during the 2019-2020 election cycle, according to CRP.
Nearly 60 percent of the $ 600,300 given to federal candidates went to Republicans and the rest to Democrats, according to the CRP, a mix that is likely to shift to the left as the bank supports a wider range of socio-economic issues. ,
Overall, commercial banks have increased their political spending in recent years, charging federal candidates $ 14.6 million in the 2020 cycle, the second-highest amount since 1990.
The mix preferred the Republicans after the 2008 financial crisis, but in recent years banks have increased spending on Democrats as they seek to restore bipartisan support in Congress.