Banks are starting to have second thoughts about making loans to corporations that destroy the environment. . Now there seems to be lots of environmental pressure and decisions made in court making it so banking companies are held responsible for anything that causing the environment destruction that they financed. Any business that has environmental risk is getting the shaft when it comes to loans thinking about banking institutions do not wish to lose other customers over it.
Destruction of the environment is what banks lend to support
Getting money isn’t that hard. Mountaintop removal mining corporations will find a way to get it. As outlined by the New York Times, bank industry analysts think that climate change debates, standards for water quality and environmental issues are making it so lenders are more concerned where credit is given. Wells Fargo even is thinking about different changes. This is because “considerable attention and controversy” is being given to mountaintop removal mining recently. ”Limited and declining,” is the phrase it used to talk about mountaintop mining businesses getting financing. They are likely to be denied. The decision by Wells Fargo emulates similar policy shifts by Credit Suisse, Morgan Stanley, J.P. Morgan Chase, Financial institution of America and Citibank. The banking companies have all decided mountaintop mining companies aren’t places to lend to, or may have special consideration.
Mining with mountaintop removal means you purchase cheap coal
Mountaintop mining is something the Appalachian region environmentalists don’t like. In fact, they used an opportunity with the Obama administration on Monday to try and get it banned. On September 27, you can expect to see a rally by the group where the president was invited, reports the Associated Press. To get coal via mountaintop removal mining, forests are clear-cut first. They have to use explosives then. This is to break huge rock. . Streams and wildlife habitats are hurt when the dirt picked up is dumped into valleys. Operators say it’s the cheapest way to reach coal for electric power plants and supports tens of thousands of jobs. The Appalachian coal industry could have a Washington rally of its own on Sept. 15 to protest federal regulations it says remove mining jobs.
Other banks eager to fill the void
The Rainforest Action Network (RAN) has attempted to stop financing for mountaintop removal mining via banks since 2007. Organicconsumers.org reports the group’s efforts have helped persuade the top four banking companies within the country to back from Massey Energy, a leading mountaintop mining company based upon in West Virginia. Massey Energy was involved in the Upper Large Branch mine explosion that killed 29 miners in April. It seems like numerous banks are ready for this. Banks want to lend to them. PNC and UBS are doing well now. They are the two leaders, according to Bloomberg data, of mountaintop removal mining. Almost half of the Mountaintop removal coal in the U.S. is financed by PNC.
Additional reading
New York Times
nytimes.com/2010/08/31/business/energy-environment/31coal.html?_r=1 and dbk
Associated Press
google.com/hostednews/ap/article/ALeqM5iRFjIvp7yDpMnistp_aolQIRAj_QD9HTVS4O0
Organic Consumers
organicconsumers.org/articles/article_21396.cfm
