Public concerns are mounting over JPMorgan Chase (NYSE:JPM)'s financial connections to Third Coast Infrastructure following a recent oil spill in the Gulf of Mexico. The incident, detected last Thursday by the United States Coast Guard (USCG), did not immediately result in environmental damage, but it has brought to light JPMorgan's ties to the energy sector and its substantial investments in fossil fuels.
Cleanup operations for the spill are currently underway, involving skimming vessels and remotely operated vehicles. As of Monday, there have been no reported impacts on shorelines. Third Coast Infrastructure, linked to the spill, is partially owned by IIF, an entity that JPMorgan is legally affiliated with according to a Federal Energy Regulatory Commission (FERC) report from September.
Amidst these developments, Tyson Slocum of Public Citizen has voiced his concerns about banks like JPMorgan owning energy companies. He has called for enforcement of the Bank Holding Company Act and the Volcker Rule by the Federal Reserve System Board of Governors. Specifically, Slocum has requested that Vice Chair for Supervision Michael S. Barr investigate potential legal violations by JPMorgan due to its extensive investments in fossil fuels.
JPMorgan's financing activities have come under close examination, with reports showing that the bank has financed $434.15 billion in fossil fuels between 2016-22 post-Paris agreement and has invested over $141 billion into "carbon bombs." These large-scale extraction projects have significant potential for CO2 emissions. An annual report released in April highlighted JPMorgan as the "world's worst funder" of climate change, a pressing issue as global awareness of the climate emergency grows.
The situation escalated on Tuesday when Third Coast Infrastructure was notably absent from a federal spill briefing and did not provide comments on the incident. This silence has further raised questions about JPMorgan's role and responsibility in such environmental issues.
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