BANKS BACKING COAL
Extreme Investments: U.S. Banks and the Coal Industry; RAN, Sierra Club, and BankTrack’s 2013 Coal Finance Report Card
April 2013 (Rain Forest Action Network)
“…In spite of the human and environmental costs of coal as well as the growing financial risks associated with investments in the coal industry, U.S. banks financed a combined $20.8 billion for the worst-of-the-worst companies in the coal industry in 2012 [according to the fourth annual Coal Report Card from Rainforest Action Network, Sierra Club, and BankTrack]…
“Bank of America, Citigroup, and JPMorgan Chase had the most exposure to coal among U.S. banks in 2012, financing $3.03 billion, $2.75 billion, and $2.17 billion respectively in loan and underwriting transactions with companies that engage in mountaintop removal coal mining or electrical utilities that are expanding or extending the lives of their coal-fired power plant fleets.”
“This year’s report card highlights additional risks associated with companies that transport coal or are involved with coal export terminals…[and includes] case studies on the most risk coal investments banks are exposed to, including Patriot Coal, which declared bankruptcy in 2012 and began to phase out its MTR mining operations, and the Tennessee Valley Authority, which recently announced controversial plans to extend the life of a coal plant.
“With few exceptions, bank lending and financing policies for the coal sector for this year’s report card received disappointingly low grades. Although Wells Fargo improved to a “C” for taking steps to improve its mountaintop removal mining lending practices and HSBC North America received a “C-“ for policies covering its lending to coal-fired power, grades for the rest of the U.S. banking sector showed almost no improvement…”
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