JP Morgan CEO responds to Rashida Tlaib’s demand for banks to end fossil fuels financing
Jamie Dimon, CEO of JP Morgan Chase, said in no uncertain terms that his bank will not stop financing fossil fuel production.
“Absolutely not, and that would be the road to hell for America,” Dimon said Wednesday in a confrontation with Michigan Democrat and Squad member Rashida Tlaib.
Tlaib asked bank executives to answer ‘yes’ or ‘no’ to whether or not they have policies ‘against financing new oil and gas products’ – to fulfill their collective pledge to work towards net zero by 2050 emissions.
In response to Dimon’s loud no, Tlaib advised citizens to delete their accounts from the banking giant.
“Sir, you know what, anyone who got relief from student loans? [that] has a bank with your bank, they should probably close their account and close their account,” she said, referring to President Joe Biden’s plan to forgive up to $20,000 in student loans.
“The fact that you’re not even there to help a lot of the people who are in debt, extreme debt because of student debt, and you criticize that.”
The congresswoman then returned to her original question, saying that Dimon “obviously” doesn’t care about “working class people in frontline communities like ours who are dealing with high rates of asthma and respiratory problems and much more.”
JP Morgan Chase CEO Jamie Dimon said stopping new oil and gas sales would be America’s ‘road to hell’
Dimon’s response comes after Michigan Democratic Representative Rashida Tlaib asked the CEO of the nation’s largest banks if they have policies against financing new oil and gas products.
Bank executives gathered before congress on Wednesday and painted a vague picture of the US economy. Dimon (third from left) said JP Morgan Chase was “definitely not” divesting from fossil fuels, while others gave measured answers about helping customers transition to renewable energy sectors
Tlaib quickly turned to the other executives for their investment responses.
“We will continue to invest in and support customers who invest in fossil fuels and help them transition to cleaner energy,” said Citigroup CEO Jane Fraser.
Brian Moynihan, CEO of Bank of America, agreed with Fraser, saying they help customers walk a greener path.
“We’re helping our customers make a transition, and that means extending loans to both oil and gas companies as well as new energy companies and helping them monitor their course towards the standards you’re talking about,” Moynihan said. .
The CEOs of the country’s largest banks gathered before Congress on Wednesday and painted a hazy picture of the US economy, a reflection of the financial and economic problems facing many Americans.
Some executives didn’t say ‘yes’ or ‘no’, but simply suggested that they would still invest in fossil fuels while helping customers achieve a ‘greener’ approach
Jane Fraser, CEO of Citigroup, said: ‘We will continue to invest in and support customers who invest in fossil fuels and help them transition to cleaner energy sources’
Brian Moynihan (right), CEO of Bank of America, agreed with Fraser’s approach
Dimon, Faser and other bank executives also warned that the US consumer is in good shape, but threatened by high inflation and rising interest rates.
The hearing took place the same day the Federal Reserve announced it would raise its benchmark interest rate by three-quarters of a point to contain inflation.
At the request of lawmakers, banking CEOs seemed increasingly skeptical that the Fed could achieve its goal of a “soft landing,” pushing back inflation without causing widespread damage to the economy.
“I’m keeping my fingers crossed,” Dimon said.
Fraser said in comments prepared for the hearing that while “COVID is behind us, the economic challenges we now face are no less daunting.”
Despite the vague opinion, the CEOs generally said that the American consumer is currently in good financial health because of the savings they have amassed during the pandemic.
Brian Moynihan said the amount of money in customer accounts has remained stable. Dimon said wages have risen while debt has fallen, and Fraser said consumers are spending at high levels.
The CEOs will return on Thursday before the Senate Banking Committee.