Jamie Dimon says stopping oil and gas funding would be ‘road to hell for America’

- Advertisement -


,Stopping new oil and gas funding? ‘That would be the road to hell for America.’,

- Advertisement -


—Jamie Dimon

- Advertisement -

JPMorgan Chase CEO Jamie Dimon has strongly assured lawmakers that his bank has no intention of stopping development funding in the oil patch.

Dimon, who appeared along with other top banking executives on Capitol Hill on Wednesday, was asked by Representative Rashida Tlaib of Michigan to answer a handful of questions either “yes” or “no.” This includes whether JPMorgan JPM,
-1.86%
There is a policy against the financing of new oil and gas products.

- Advertisement -

“Absolutely not and it would be the road to hell for America,” said Dimon, whose bank is the largest US provider of loans and other capital for the energy sector.

In a report released earlier this year, sixty banks funneled $185.5 billion last year alone into the 100 companies doing the most to expand CL00 oil,
+0.88%
and gas field. The report was from a group of environmental nonprofits in their 13th annual Banking on Climate Chaos release.

The Biden administration has used its thin congressional majority to pass legislation on top of executive orders for a shift toward alternative energy, which aims to cut US carbon emissions by 50% by 2030 and hit net-zero by 2050. To do. The energy sector contributes about 40. % of global heat-trapping CO2. The World Bank says three quarters of these emissions come from the top six largest economies, including the US and China.

Republicans and some business executives maintain that the Solar, Wind and Nuclear ICLN,
-2.86%
could meet much of the country’s energy needs, conventional oil and gas needs to play a role due to the high energy costs and to help promote American energy independence.

Banks scrutinizing the release said that in the six years since the adoption of the Paris Agreement, which set a target for global warming of no more than 2 degrees Celsius, and ideally, 1.5 degrees, the world’s 60 hottest Big banks finance fossil fuels with $4.6 trillion. in debt and other capital.

The report showed that overall fossil-fuel financing is dominated by four US banks, including Dimon’s JPMorgan Chase, Citigroup C,
-2.90%
Wells Fargo WFC,
-2.67%
and Bank of America Bac,
-2.37%
Together accounting for a quarter of all fossil fuel financing identified in the past six years.

On Wednesday, lawmakers questioned the bank’s CEO on inflation and home ownership, the same day the Federal Reserve raised another anticipated interest rate hike. Republican members considered the Capitol Hill presence unnecessary for banking officials. The CEO largely emphasized the capital requirements and lauded his role in keeping capital flowing as the economy navigates difficult territory as the world works back through the worst of the COVID-19 pandemic.

The CEO will testify before the US Senate Banking Committee on Thursday.

Associated Press contributed,

Credit: www.marketwatch.com /

- Advertisement -

Recent Articles

Related Stories