“Stopping new oil and gas funding? ‘That would be the road to hell for America.’”
JPMorgan Chase CEO Jamie Dimon resoundingly confident lawmakers that his financial institution has no aim of stopping the financing of expansion within the oil patch.
Dimon, who gave the impression with different most sensible banking executives on Capitol Hill Wednesday, was once requested by means of Rep. Rashida Tlaib, the Democrat of Michigan, to give a ‘yes’ or ‘no’ reaction to a handful of questions. That incorporated whether or not JPMorgan
has a coverage in opposition to funding new oil and gas merchandise.
Sixty banks profiled in a document issued previous this yr funneled $185.5 billion final yr on my own into the 100 corporations doing essentially the most to enlarge the oil
and gas sector. The document was once from a gaggle of environmental nonprofit organizations of their thirteenth annual Banking on Climate Chaos liberate.
The Biden management has used its narrow congressional majority to cross law on most sensible of government orders for a shift towards selection power this is supposed to minimize U.S. carbon emissions by means of 50% by means of 2030 and hit net-zero by means of 2050. The power sector contributes about 40% of worldwide heat-trapping CO2. Three quarters of the ones emissions come from the six greatest economies, together with the U.S. and China on the most sensible, the World Bank says.
Republicans and some trade executives handle that whilst sun, wind and nuclear
can absorb extra of the country’s power wishes, conventional oil and gas wishes to play a task due to prime power prices and to lend a hand foster U.S. power independence.
The liberate scrutinizing banks mentioned that within the six years because the adoption of the Paris Agreement, which set a function for world warming of not more than 2 levels Celsius and, preferably, 1.5 levels, the sector’s 60 greatest banks financed fossil fuels with $4.6 trillion in loans and different capital.
The document confirmed that total fossil-fuel financing stays ruled by means of 4 U.S. banks, with Dimon’s JPMorgan Chase, Citigroup
, Wells Fargo
, and Bank of America
in combination accounting for one quarter of all fossil gasoline financing known over the past six years.
On Wednesday, lawmakers further questioned bank CEOs on inflation and home ownership at the identical day that the Federal Reserve delivered another anticipated interest-rate hike. Republican contributors deemed the Capitol Hill appearances as pointless for the banking executives. The CEOs in large part driven again on capital necessities and lauded their function in protecting capital flowing because the economic system navigates difficult territory as the sector works its long ago from the worst of the COVID-19 pandemic.
The CEOs will testify earlier than the U.S. Senate Banking Committee on Thursday.
The Associated Press contributed.