Saturday 5 June 2021 9:27 am

JP Morgan freezes donations to Republicans who contested election

JP Morgan will resume making donations to US politicians but will snub Republicans who voted to overturn President Joe Biden’s election victory.

The Wall Street giant was among a host of corporations that halted political donations following the deadly storming of the Capitol in January, which was spurred on by former president Donald Trump.

Hours later 147 Republicans — most of whom were in the House of Representatives — voted to overturn the election result that Trump falsely claimed was fraudulent.

Following a review, JP Morgan will resume donations this month but will freeze payments to a “handful” of the 147 politicians it had previously supported, according to an internal memo seen by Reuters.

It came as Citigroup also resumed political donations after a hiatus prompted by the Capitol riots, but said it would not ban payments to those who tried to overturn the election.

In a memo to employees, the lender instead said it would only donate to those politicians that supported a set of five principles, including protecting democratic institutions.

JP Morgan’s halt on donations will last to the end of the current election cycle, which includes November’s midterm votes, after which the bank will review contributions on an individual basis.

“This was a unique and historic moment when we believe the country needed our elected officials to put aside strongly held differences and demonstrate unity,” the lender wrote.

It added that its Political Action Committee (PAC), through which it makes donations, was an important tool for engaging in the political process in the US.