Letter urges big bank to pledge not to exploit bad campaign finance ruling to aid top lobbyist

With NY's limit on corporate campaign funding in peril, JP Morgan asked to voluntarily stand down

Today, in a letter to JPMorgan Chase, Democrats urged the big bank to pledge not to fund an advertizing blitz or independent expenditure campaign on behalf of Lazio, its top lobbyist, this fall.   

In January, the Supreme Court opened the floodgates for corporations to spend without limit in U.S. elections in Citizens United v. Federal Election Commission.  The ruling undermines laws in New York and 23 other states restricting campaign spending by corporations. (NY Times, 1/23/10, click)

JP Morgan, unlike its big bank competitor, Goldman Sachs, has not adopted a code of conduct to restrict its electioneering activities in light of the new ruling. (NY Times, 8/3/10, click).

Lazio, meanwhile, has struggled to finance his own campaign, from his JP Morgan colleagues or otherwise; his campaign expenditures have outpaced contributions in the last filing period, and Lazio was forced to float his campaign a $200,000 personal loan.  This invites the possibility that he will turn to his big bank employer for assistance at the last minute. 

“The Supreme Court ruling may have given the green light for corporations to spend freely in our elections, but that doesn’t mean it’s right.  JP Morgan should follow the lead of other corporations that have voluntarily pledged not to put up ads to support or defeat individual candidates -- especially considering that one of the bank’s own employees, Rick Lazio, is currently seeking New York’s highest office,” said Jay Jacobs, chairman of the NYS Democratic Committee.

“JP Morgan’s action is all the more important, since Lazio – whose campaign spent more money than it took in from contributors last filing period – has refused to say that he would reject such financing, no matter how unseemly it would be.  Lazio’s campaign doesn’t deserve a bailout.  Instead, JP Morgan needs to recognize the importance of voluntarily restricting its corporate spending and pledge not to fund an advertising blitz on behalf of its lobbyist, Lazio, this fall,” said Jacobs.    

The text of the letter follows below.

* * *

Peter L. Scher
Executive Vice President, Global Government Relations & Public Policy
JPMorgan Chase
270 Park Ave.
New York, NY 10017-2070
Dear Mr. Scher:

We are writing to urge JPMorgan Chase to pledge not to mount an independent advertising campaign on behalf of Rick Lazio this fall.

For generations, federal and state laws have wisely restricted spending by corporations to support or oppose candidates for elected office.  The thinking behind these restrictions was simple and powerful: the interests of Americans, not corporations, must take precedence in our democracy.

In January, however, the Supreme Court swept away a century of these restrictions in Citizens United v. Federal Election Commission, potentially opening the floodgates for corporations to spend freely to support or defeat candidates for elective office. 

The case has raised alarm bells for those who recognize just how important a comprehensive campaign finance system is to the integrity of our democratic system.  Not only did the ruling eviscerate a federal law in effect since 1907, the case undermines the campaign finance laws of the 24 states which restrict or ban campaign spending by corporations, including New York.

Corporations, however, can and should exercise self-restraint.  Recently, Goldman Sachs modified its campaign finance code of conduct to explicitly preclude the bank from engaging in the type of electioneering now legal under Citizens United.   

JPMorgan Chase should immediately do the same.  This is especially important for JP Morgan given that, this year, one of its employees is seeking New York’s highest office.  

As press accounts make clear, Lazio’s campaign is struggling to raise funds, forcing him to loan his campaign $200,000.  After serving as JP Morgan’s lobbyist for years, Lazio may well seek its assistance to provide a last-minute infusion of resources, no matter how unpopular such a request may be with the electorate.

At a minimum, we request that JPMorgan Chase pledge not to intervene in New York’s election this fall by funding an advertising campaign on Lazio’s behalf.  

Thank you for your consideration of this request.  We would appreciate the favor of your reply by August 27, 2010.  
Respectfully submitted,

Jay Jacobs
Chairman, New York State Democratic Committee