Leading U.S. bank JPMorgan Chase (NYSE:JPM) has been accused by 19 Republican states of discriminating against some customers based on their religious or political affiliation, the Wall Street Journal reported.
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Discrimination Allegations
Calling such discrimination unacceptable, Republican state attorneys general of 19 states sent a letter earlier this month, urging CEO Jamie Dimon to stop such actions and align the bank’s practices with the anti-discrimination policies it proclaims. In March, a similar letter was sent to Dimon by 14 Republican state treasures.
The pressure on JPMorgan comes ahead of its annual shareholders meeting on Tuesday. An investor has reportedly submitted a resolution demanding an investigation by the bank into the allegations made in the letter. However, JPMorgan’s board has recommended the shareholders reject the resolution.
One of the accounts mentioned in the letter was that of a multi-faith group, the National Committee for Religious Freedom (NCRF), run by Sam Brownback, former Kansas governor and Trump administration ambassador-at-large for religious freedom. The account was allegedly closed unilaterally by JPMorgan, even before NCRF received any intimation.
When contacted by NCRF, the bank’s employees said the decision came from the corporate office. Subsequently, “someone” from the bank reached NCRF and said that the account would be restored if NCRF provided information on its donors, political candidates it intends to support, and an explanation about the criteria used to determine its endorsements. The attorneys general feel that such behavior “flies in the face of basic American values of fairness and equality.”
Overall, Republicans fear the extent to which large institutions like JPMorgan can influence decisions. “Everyone is trying to leverage their power to become policy makers,” said Sean D. Reyes, Utah’s attorney general.
Meanwhile, JPMorgan denied the allegations, with the bank’s spokesperson saying, “We have never and would never exit a client relationship due to their political or religious affiliation.”
Is JPMorgan a Buy, Sell, or Hold?
The Moderate Buy consensus rating on JPMorgan Chase is based on 14 Buys and five Holds. The average price target of $160.51 implies about 20% upside.
