Major financial firms JPMorgan Chase and Citigroup have recently announced their decision to pause PAC (Political Action Committee) donations after supporters of President Trump stormed the U.S. Capitol last week.
JPMorgan spokesman Steve O’Halloran stated that, the company, the largest U.S. bank by assets, will pause contributions for Republicans as well as Democrats for minimum six months. The New York-based bank is planning to utilize that time for contemplating certain potential changes in its strategies related to political-donations.
Commenting on the same, Peter Scher, head of corporate responsibility at JPMorgan has stated that the country is going through unprecedented health, economic, and political crises during which business, political, and civic leaders should focus on governing and providing help to those in desperate need. There will be plenty of time for campaigning later, Scher added.
Meanwhile, Citigroup has informed its employees through an internal communication that it halting Political Actions Committee (PAC) donations towards all lawmakers during first quarter. Speaking of which, Candi Wolff, Citigroup’s head of global government affairs, has stated that the group will not support candidates who disrespect the rule of law and it intends to pause its contributions during the current quarter as the country goes through presidential transition.
Prompted by the riots of January 6th, 2021, which resulted in five deaths, corporations such as Blue Cross Blue Shield insurance group and Marriott International stated that they would stop funding the Republican lawmakers who supported the efforts of disrupting the certification of the victory of President-elect Joe Biden. Banks on the other hand, have decided to temporarily halt the donations to all the lawmakers instead of specifically targeting and alienating members of the Republican party.
Apparently, these moves are the repercussions of the recent event which urged American corporations to come to terms regarding their response. In this regard, several technology companies such as Facebook, Twitter, and Amazon have taken actions for limiting the spread of disinformation that might lead to further violence.
The PAC pools employee donations together and can provide up to $5,000 to a candidate per election and over $15,000 to any national party committee annually. As the money is raised through voluntary employee contributions, the move bypasses federal laws which forbids companies from directly funding the candidates.