Before thecoronavirus , the American oil and flatulence industriousness was struggle to keep its profits up . The pandemic exacerbated that , and now it ’s doingway , means worse . Companies to a great extent hooked on fracking in Texas and Wyoming could go belly up .
harmonize toReuters , to keep off departure on the loans they made to fossil fuel companies that may go bankrupt , a grouping of gravid banks are organise to take over the companies themselves . The banks admit JPMorgan Chase , Wells Fargo , Bank of America , and Citigroup .
But wait ! Are n’t these company supposed to be clime leaders , now ? In February , JP Morgan Chase made a bunch of splashy climatecommitments , admit a promise to no longer fund drilling in the Arctic . Wells Fargo , Bank of America , andCitigrouphave all made haphazardness about their sustainability pledges , too , saying they ’ll invest in renewable energy and be more choosy about the vitality projects they back .
Photo: Getty
https://gizmodo.com/now-is-the-time-to-invest-in-a-green-new-deal-1842264171
If these fiscal institutions care so much about sustainability , they must realise that petroleum and gas have got to go , proper ? In theory , the banks could take over these company and wind them down . But Reuters reports the bank are look to put private equity companies like the Houston - base firm EnerVest at the helm of superintend these companies and continuing to frack and extract fossil oil and gasolene .
The design neatly exemplify why , despite some pledges to not ruin the climate , we ca n’t confide banks to do good on their own . The job is , the end of private bank is n’t to take care of people and the planet ( although in the tenacious run , that ’s a pretty goodfinancial scheme ) . It ’s to protect their investments . And theirinvestmentsin the fossil oil and gas industry have been considerable . According to Reuters , banks have plain the American petroleum and gasolene diligence $ 200 billion in loans leverage against petroleum and gas reserve .
As arecent reportshows , the four bank building that are looking to take over energy companies , JPMorgan Chase , Wells Fargo , Citi , and Bank of America , are the four largest global backer of fossil fuels . To not turn a loss money on those loanword , banks will count to make those companies profitable — and unless officials stop them , they ’ll probably take reward offunds in the Union covid-19 stimulus packageto do so .
In late months , climate , environmental , and autochthonal organizations with theStop the Money Pipelinehave beenpushing banksand other Wall Street institutions to staunch the flow of money to fossil fuel companies . Now , with a bank takeover on the purview , they’repressuringfederal lawmakers to prevent stimulation bill funding from being used to bail out fossil fuel producer .
The plotted coup d’etat could n’t come at a more absurd time . We need to wean ourselves off fossil fuelsas soon as possible , and now is theperfect time to do so . And give the obvious trouble oil and gasoline companies are in and how cheap it it is to take up money , there ’s never been a good prison term to wind down yield and withdraw all their plus .
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