Jamie Dimon, executive director of JPMorgan Chase & Co., second to the left, listens during a hearing from the House Financial Services Committee in Washington, DC, USA, on Wednesday, April 10, 2019.
Andrew Harrer | Bloomberg | Getty Images
JPMorgan Chase and Citigroup are among the first major financial firms to say they will suspend donations from the political action committee after President Trump’s followers besieged the United States Capitol last week.
JPMorgan, the largest US bank in assets, is suspending contributions to Republicans and Democrats “at least” for the next six months, according to spokesman Steve O’Halloran. The New York-based bank will use this time to consider possible changes in its political giving strategies.
“The country is facing unprecedented health, economic and political crises,” said JPMorgan’s head of corporate responsibility, Peter Scher, in a statement provided to CNBC. “The focus of business leaders, political leaders and civic leaders now must be to govern and get help for those who desperately need it most now. There will be plenty of time to campaign later.”
Spurred on by the January 6 riots, in which five people lost their lives, companies like Marriott International and the insurance group Blue Cross Blue Shield said they would stop giving money to Republican lawmakers who supported efforts to interrupt President-elect certification. Joe Biden Victory. But the banks, instead of targeting and potentially alienating members of the Republican Party, have moved to suspend donations to all lawmakers, at least for the time being.
The changes were part of the larger consequences of a shameful episode that forced American companies to agree on how to respond. Technology companies like Twitter, Facebook and Amazon have taken steps to limit the spread of misinformation that could incite further violence.
Political action committees collect employee donations and can direct up to $ 5,000 to a candidate per election, as well as $ 15,000 annually to any national party committee. As the money is raised with voluntary contributions from employees, the measure circumvents federal laws that prohibit companies from giving money directly to candidates.
Citigroup is also suspending PAC donations to all lawmakers during the first quarter, the bank told employees on Friday in an internal statement.
“We want you to be sure that we will not support candidates who do not respect the rule of law,” said Candi Wolff, head of global government affairs, in the memo. “We intend to pause our contributions during the quarter, as the country goes through the presidential transition and, hopefully, comes out of these stronger and more united events.”
Bank of America spokesman Bill Halldin said that “the terrible violent assault on the US Capitol” will be a factor in grant decisions for the 2022 midterm elections.
Goldman Sachs representatives Morgan Stanley and Wells Fargo did not immediately respond to messages over the weekend.
This story is developing. Please check again for updates.