JPMorgan Chase (NYSE:JPM), was among the first major financial firms to say they put a hold on political donations after followers of President Trump laid siege on the U.S. Capitol last week.
JPMorgan, the biggest U.S. bank by assets, is pausing political action committee contributions for Republicans and Democrats for “at least” the next six months, spokesman Steve O’Halloran said. The New York-based bank will use that time to consider changes to its political-donation strategies.
"The country is facing unprecedented health, economic and political crises," said Peter Scher, JPMorgan head of corporate responsibility. "The focus of business leaders, political leaders, civic leaders right now should be on governing and getting help to those who desperately need it most right now. There will be plenty of time for campaigning later."
Spurred on by Wednesday’s riot, which resulted in five deaths, corporations including Marriott International and Blue Cross Blue Shield have said they would stop giving money to Republican lawmakers who backed efforts to disrupt the certification of President-elect Joe Biden’s victory. But banks, rather than targeting and potentially alienating members of the Republican Party, have instead decided to halt donations to all lawmakers for now.
Political action committees allow companies to sidestep federal laws that prohibit them from giving money directly to candidates. They pool voluntary 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.
JPM shares nicked ahead four cents to $136.06.
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