- Deutsche Bank has joined a growing list of corporations that have since withdrawn support from the President and members of the Republican Party.
- Goldman Sachs, Citigroup, Morgan Stanley, JPMorgan Chase & Co., among others, have announced that they will cut commercial ties or stop political donations.
- Advertisements have already accused Republican lawmakers– and their corporate supporters– of trying to delegitimize the electoral process.
Several companies have distanced themselves from the outgoing American President, Donald Trump, after the Capitol attack that resulted in five deaths. The latest is Deutsche Bank. The bank decided to abandon Donald Trump, a longtime customer. The bank’s move is not exactly a surprise.
Prior to the November elections, senior Deutsche Bank officials had said that the company was looking for a way out of its long-term relationship with President Trump.
He owes the bank hundreds of millions of dollars in loans and, as a customer, has scratched the institution’s image. This week, Deutsche Bank saw an opportunity and took advantage.
The bank has joined a growing list of corporations that have since withdrawn support from the President and members of the Republican Party who played a role in the Capitol events.
Financial Institutions Abandon Trump
In recent days, financial institutions Goldman Sachs, Citigroup, Morgan Stanley, JPMorgan Chase & Co., among others, have announced that they will cut commercial ties or stop political donations in light of recent events.
Some institutions have even said that they will freeze donations for Republican lawmakers who voted against certifying the results of the 2020 presidential election. Others say they will temporarily suspend political contributions for both Republicans and Democrats. This sudden move exposed the corporate role in the US political machine.
Hundreds of Millions of Dollars in Donations
American campaign finance law prohibits corporations and unions from spending to influence federal elections. However, they are free to fund candidates or parties indirectly, through donations to political action committees (PACs) or SuperPACs. This practice is used by many of the companies that are now distancing themselves due to events on Capitol Hill.
Political action committees are organized to raise and spend funds in order to elect or defeat political candidates. PACs, established for the first time in 1944, are subject to action limits in a given electoral cycle. The establishment of SuperPACs in 2010 provided donors with a way to circumvent this spending cap.
Instead of being donated directly to a campaign or political party, funds aggregated by SuperPACs are used to independently fund other aspects of federal campaigns, such as advertisements that support or oppose a specific candidate or an agenda linked to it. There is no limit to the amount of money that SuperPACs can access.
In the most recent American electoral cycle, liberal-aligned SuperPACs spent a total of $916 million, and those aligned with conservatives spent $1.2 billion, according to data from the Center for Responsive Politics, an NGO that monitors money in American politics.
For CEOs, Trump is Bad for Business
The point is that corporations know that, at any time, activist groups can hold them publicly accountable. Advertisements have already accused Republican lawmakers– and their corporate supporters– of trying to delegitimize the electoral process.