The three largest US banks – JPMorgan Chase, Goldman Sachs and Citigroup – temporarily refused to donate their own funds and employees’ money to American politicians, regardless of their party affiliation, writes CNBC.
This decision was made by financial organizations due to the storming of the Capitol building by supporters of the current President Donald Trump, who did not recognize the results of the last elections. The victory was won by the rival of the head of state, the candidate from the Democratic Party, Joe Biden. Five people were killed in clashes with the police.
We are talking about the so-called political action committees (PAC) – special non-profit funds exempt from taxation and aimed at financing candidates in elections at various levels. Both commercial and non-commercial organizations have the right to create PACs. The former can accept contributions from their own employees.
PACs that fund candidates’ campaign headquarters are subject to contribution limits for a year or a single campaign. However, PACs are also free to fund individual candidates’ expenses and needs, such as advertising campaigns.
JPMorgan Chase announced the suspension of transfers from its own PAC to any politicians for a period of six months. Citigroup is taking similar measures until March 30.