Critics Decry ‘Massive Step in Wrong Direction’ as Big Banks Move to Buy Up Fracking Industry Assets With Coronavirus Bailout Funds

Climate advocates are slamming banking interests after a report Thursday revealed that JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup are planning to take over distressed oil and gas companies assets in the wake of an industry collapse, likely by using new access to federal bailout money included in the coronavirus relief package passed by Congress.

“If these banks want to get their hands even more bloody, so be it, we are taking tally.”
—Dallas Goldtooth, Indigenous Environmental Network

“It’s never been more obvious that fossil fuels are a bad investment, and yet rather than following their supposed commitments to climate action, these big banks are doubling down on their toxic investments and getting directly into the fossil fuel business,” Sierra Club campaign representative Ben Cushing said in a statement.

As Reuters reported Thursday, the decision by the banks to look into taking over oil and gas companies comes in the wake of oil price drops in March that have led to the potential for fossil fuel companies to go bankrupt under the strain of the collapse of the fracking industry.

“This development exposes the central role of banks in fossil fuels and clearly illustrates the riskiness of fossil finance,” said Rainforest Action Network senior campaigner Jason Opeña Disterhoft.