(Source: Justin Sullivan/Getty Images )
In March, Congress passed the CARES Act, an economic stimulus package they claimed was intended to aid Americans struggling economically due to the ongoing coronavirus pandemic. The bill provided $349 billion in funding for the Paycheck Protection Program, which the bill created in order to help struggling small businesses received aid. However, the big banks -- including JPMorgan Chase, Citibank, and U.S. Bancorp -- are already prioritizing loan applications to their wealthiest clients over the small businesses who need it most. "At JPMorgan, nearly all of the 8,500 commercial and private banking clients who applied for a loan got one," Emily Flitter and Stacy Cowley of The New York Times report. "That included companies like the sandwich chain Potbelly and the pharmaceutical company MannKind. At the same time, only 18,000 of more than 300,000 small-business banking customers who applied through Chase’s retail bank, where they normally did business, got loans, according to the bank." Given what these banks have been doing to their customers, why did Congress pass a bill that excludes regulations to prevent them from doing so? More specifically, why did Democratic leaders not fight the Republicans on this issue?
Perhaps it has something to do with Senate Minority Leader Chuck Schumer's (D-NY) history of taking campaign money from these banks. Since 2010, he has received $6,000 from JPMorgan Chase and $10,500 from Citigroup (of which Citibank is a subsidiary). Additionally, during his most recent re-election campaign in 2016, as well as during this election cycle, he has taken $49,750 from lobbyists for them -- namely Heather McHugh ($6,900, Citigroup), Manuel Ortiz ($5,400, Citigroup), Vincent Roberti ($5,200, Citigroup), Katharine Lister ($4,400, JPMorgan Chase), Steven Elmendorf ($3,400, Citigroup), Barry LaSala ($3,000, Citigroup), Michael D. Smith ($2,500, Citigroup), Izzy Klein ($2,000, Citigroup), Joseph Mikrut ($2,000, Citigroup), Jonathan Talisman ($2,000, JPMorgan Chase and Citigroup), Charles M. Brain ($1,800, Citigroup), De'ana Dow ($1,500, JPMorgan Chase), Jenn Fogel-Bublick ($1,500, JPMorgan Chase), Kristina Kennedy ($1,500, Citigroup), Jimmy Ryan ($1,400, Citigroup), Pat Bousliman ($1,000, Citigroup), Susan Brophy ($1,000, JPMorgan Chase), Shanti Stanton ($1,000, Citigroup), Patrick G. Heck ($500, JPMorgan Chase), Andrew Howell ($500, JPMorgan Chase), Beau Schuyler ($500, Citigroup), Rich Thomas ($500, JPMorgan Chase), and Bridget F. Hagan ($250, Citigroup). He also took $5,000 from family members of Citigroup lobbyist Stacey Alexander, $1,500 from U.S. Bancorp President Andrew Cecere, and, through his PAC -- Impact -- an additional $17,800 from Elmendorf ($10,000), Ryan ($4,600), McHugh ($2,700), and Klein ($500). Meanwhile, JPMorgan Chase lobbyist Kevin Casey has donated, this election cycle, $1,000 to House Speaker Nancy Pelosi's (D-CA) PAC to the Future.
Now, it seems understandable as to why Democratic congressional leaders did not fight the Republicans on allowing banks to have a blank check to prioritize the wealthy's applications over those of the struggling small businesses that are in much greater need of aid. Sadly, if party leaders, especially Schumer, continue to listen to their donors such as these banks, those in need may only get minimal financial aid, when that's just not enough.
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