WHAT BANKS’ MONEY DOES

Grading the Banks: Mountaintop Removal Report Card
May 12, 2010 (Rainforest Action Network)

"Mountaintop removal (MTR) coal mining is one of America’s worst environmental crimes. Every day, across Appalachia, the coal industry literally blows the tops off the mountains: clear-cutting forests, wiping out natural habitats and poisoning rivers and drinking water. Not only are these mountains lost forever, but the heritage and the health of families across the region are being sacrificed. For a mere seven percent of the nation’s coal, the tradeoff does not add up."

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"Banks and financial institutions are key sources of financing for companies that practice mountaintop removal. [Policy and Practice; Report Card on Banks and Mountaintop Removal] examines nine banks—Bank of America, Citi, Credit Suisse, GE Capital Corp, JPMorgan Chase, Morgan Stanley, PNC, UBS and Wells Fargo —that make up the majority of financing for MTR. Since January 2008, the nine banks examined in this report card have provided more than $3.9 billion in loans and bond underwriting…[for] mountaintop removal coal mining.

"…[B]anks and financial institutions [must] adopt strict lending practices when it comes to mountaintop removal. Several banks in the U.S. and in Europe have recently adopted policies that limit, and even end their financing of this environmentally devastating practice…In this report card we review each bank’s position on MTR coal mining and award a ‘grade’ based on: strength of performance threshold, scope of due diligence and public transparency."

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"Rainforest Action Network and the Sierra Club are calling for the nine banks reviewed in this report card to strengthen their policies and cease their financial support for MTR. Our recommended ‘best practice’ is a clear exclusion policy on commercial lending and investment banking services for all coal companies who practice mountaintop removal coal extraction…"