Banks Bail on Coal; Top 4 banks Cut Financing for Massey Energy

By Rainforest Action Network

Two years ago no bank had a policy on coal mining, and Wall Street was providing finance and credit indiscriminately to the most destructive form of mining in the country. Bank of America, Citi, Morgan Stanley, Credit Suisse, JPMorgan Chase, and Wells Fargo have successively passed public policies limiting their financial relationships with coal operators that practice mountaintop removal (MTR) coal mining.

The move comes as a response to more than three years of national pressure. In 2007, we began with a campaign focused on Bank of America, the lead financier of MTR coal mining companies at the time. We have gone on to work with all of the largest banks in the country to encourage the entire industry to shift its policies. These policies signal a sector-wide shift away from a mining practice that has become increasingly controversial and a move toward more environmentally conscious fossil fuels financing.

One of the major impacts of these mountaintop mining policies is that the banks are no longer financing Massey Energy. In particular, JPMorgan Chase, Bank of America and Wells Fargo, all of which have had substantial financing relationships with Massey Energy since January 2005, no longer finance the notorious company.

We took a tour of some local bank branches to say “Thank you!”,