Three of the largest U.S. banks are failing to match pledges in support of democracy with actions to help safeguard voting rights and elections, according to the progressive corporate watchdog organization Accountable.US.
JPMorgan Chase, Morgan Stanley and Wells Fargo received the lowest marks among six national banks included in Accountable's American Democracy Scorecard, which graded the top 100 companies in the Fortune 500 on political spending and steps taken to support democratic initiatives.
The scorecard measured companies based on criteria such as corporate responsibility disclosures, statements opposing the Jan. 6, 2021, attack on the U.S. Capitol and actions taken to enhance voting rights, as well as donations to political candidates.
Accountable, a nonprofit organization, received over $1.4 million in 2020 from the New Venture Fund, another nonprofit group which finances progressive causes, according to a regulatory
While banks mostly scored well for making public statements and joining pro-democracy industry initiatives, many of them have continued to donate to congressional candidates who objected to certifying the 2020 presidential election or opposed voting rights legislation.
Bank of America and Citigroup were the highest-scoring banks with Bs on Accountable's scorecard while Goldman Sachs received a D.
Goldman Sachs and Wells Fargo, as well as American Express, were among the top national banks that have donated a combined $55,500 during the 2022 election cycle to candidates who objected to certifying the results of the presidential election, according to campaign finance data from Accountable.
The analysis also found that banks in the scorecard, including American Express, have spent a combined $788,500 on candidates opposed to federal voting rights legislation.
The scorecard's results suggest that banks want to "have their cake and eat it too," according to Lindsey Melki, Accountable's director for corporate values and democracy.
"Banks want credit with their customers, shareholders and employees for taking popular stances in favor of democracy and voting rights," Melki said during an interview. "At the same time, their political committees are cutting checks to people trying to undermine democracy and suppress the votes of their consumers and employees."
Shareholder activists and advocacy groups have
In the aftermath of Jan. 6, when supporters of former President Donald Trump stormed the U.S. Capitol seeking to overturn the presidential election, public attention has turned toward banks to signal support for protecting U.S. democracy.
A survey released in May by the polling firm Morning Consult found that 87% of consumers said that the existence of a well-functioning democracy is important to a strong economy, while 55% said businesses should speak out publicly on cultural or social issues.
Morning Consult's poll also found that 81% of business leaders said that businesses should act to ensure safe and fair elections.
Bank CEOs and trade groups spoke out strongly immediately after the January 6 attack.
"America's political environment has become too acrimonious and the events of last week were just the latest, most egregious example," Consumer Bankers Association president and CEO Richard Hunt
"I strongly condemn the violence in our nation's capital … we are better than this," JPMorgan CEO Jamie Dimon wrote in a LinkedIn
"We have to begin reinvesting in our democracy," Goldman Sachs CEO David Solomon wrote in a separate
Following similar decisions by big banks, the Consumer Bankers Association and Mortgage Bankers Association said they will halt all political contributions to elected officials as some lawmakers face harsh criticism for comments that incited the storming of the U.S. Capitol.
According to Melki, political contributions from banks have not carried the same message.
"Banks have generally spoken out on issues like voting rights yet, unfortunately, have failed to back up their words with actions," she said.
Brian Knight, director of innovation and governance at George Mason University's Mercatus Center, a conservative-leaning think tank, said that banks have "invited public scrutiny upon themselves" for increasingly weighing in on political issues. Still, he said, they "sit on a lot of power."
"People realize that, if you can get banks to dance to your tune, you can affect the real world," Knight said in an interview. "The problem is, once you've shown the willingness to speak out for certain constituencies, it becomes hard to stop others from asking you to speak out for them."
According to Todd Phillips, director of financial regulation and corporate finance at the liberal Center for American Progress, banks "must be cognizant of how their statements and actions impact the safety and soundness of their balance sheets."
"Political spending that turns off depositors and shareholders, who may move their capital elsewhere, could harm the underlying health of the bank's business."
