• The Financial District

BUSINESS GROUPS DUMP TRUMP, GOP AFTER CAPITOL RIOT

Corporate America is distancing itself from President Donald Trump and his Republican allies, with many of the biggest names in business — Goldman Sachs, Coca-Cola, Ford and Comcast — suspending political donations after a Trump-inspired mob ransacked the US Capitol in a deadly spree on January 6, 2021.

For now, the move is about affirming the rule of law and the clear results of an election that will elevate Democrat Joe Biden to the presidency. But it also signals that companies are growing skittish about lawmakers who backed Trump’s false claims of election fraud, possibly depriving Republicans of public backing from business groups who until recently were the heart of the GOP’s political brand, Josh Boak, Brian Slodysko and Tom Krisher reported for the Associated Press (AP).


“This is spreading like wildfire,” said Jeffrey Sonnenfeld, a professor at Yale University’s management school who consults with CEOs.


“The U.S. business community has interests fully in alignment with the American public and not with Trump’s autocratic bigoted wing of the GOP.”


Yet the pausing of donations announced by many companies — including Marriott, American Express, AT&T, JPMorgan Chase, Dow, American Airlines and others — was unlikely to deliver a serious blow to Republicans in Congress who voted to overturn Biden’s win.


However, Deutsche Bank and Signature Bank, which have financed Trump businesses, are now closing the financial taps of the defeated president, with the latter bank closing Donald Trump’s personal accounts.


“These are symbolic pledges,” said Sheila Krumholz, executive director of the Center for Responsive Politics, a nonpartisan group that traces the role money plays in politics.


“This is just one source of revenue and for some it’s vanishingly small, particularly in the Senate.”


Corporate-sponsored political action committees are limited to donating $5,000 per candidate each year. In races that often cost incumbents millions of dollars, such contributions account for just a small fraction of the overall fundraising picture.



WEEKLY FEATURE : JOSE MARI CHAN AND THE CHRISTMAS ANTHEM



Register for Newsletter

  • LinkedIn
  • Instagram
  • YouTube

WHERE BUSINESS CLICKS

@2020 by The Financial District