Over the past 24 hours, Deutsche Bank and Signature Bank have made the decision to end their business relationships with US President Donald Trump — a potentially massive blow to Trump’s business future as they were among the last banks willing to lend money to Trump and his family for their various businesses.
The bankers are cutting ties with the president after the insurrection at the Capitol, with one even calling publicly for his resignation. New York-based Signature has stated to the press that it has begun the process of closing Trump’s two personal accounts at the $5 billion bank and “will not do business in the future with any members of Congress who voted to disregard the Electoral College.
“We have never before commented on any political matter and hope to never do so again,” the statement reads before going on to say that the bank’s leadership has been horrified by the violence in Washington. “We witnessed the President of the United States encouraging the rioters and refraining from calling in the National Guard to protect the Congress in its performance of duty.
“At this point in time, to ensure the peaceful transition of power, we believe the appropriate action would be the resignation of the President of the United States, which is in the best interests of our nation and the American people.”
Cutting donations to Republicans
Megabanks like JPMorgan Chase, Goldman Sachs, Citigroup and Morgan Stanley are halting some or all of their political giving in light of efforts by a mob of American insurgents to forcefully interfere with the transfer of power to Joe Biden, leaving five dead.
“We paused political contributions last week after the events we witnessed in Washington DC,” Goldman Sachs’ spokesman Jake Siewert said. “And are reviewing our policy to govern whom we support going forward.”
Both JPMorgan and Goldman said they are pausing their giving across party lines for at least six months as they re-evalulate how they use their political action committee money to influence elections in the future.
Marriott was one of the first companies to announce it would be halting donations to the GOP lawmakers who objected to certifying Joe Biden as president.
And dozens have followed suit. At least 50 of America’s most prominent companies have been publicly rethinking their political giving strategy in recent days.
“This is a reaction of the moment,” said Bruce Freed, president of the Center for Political Accountability. “The question is what staying power does it have. Does this really lead to a fundamental change in the way companies approach their political spending?”
Freed argued that companies are just beginning to recognize that “political spending today poses a really broad risk and a deep risk that they need to manage.”