Wednesday, April 06, 2011

Two environmental groups grade banks on mountaintop-removal lending policies

Several banks in the U.S. and Europe have developed lending policies restricting financing of mountaintop-removal coal mines, but the effectiveness of the policies is squestioned by those opposed to MTR. In the second annual review of the policies, the Rainforest Action Network and the Sierra Club grade 10 banks "based on the strength of the performance threshold, scope of due diligence and public transparency," the network reports.

"The 'best practice' as recommended in the grading scale is a clear exclusion policy on commercial lending and investment banking services for all coal companies who practice mountaintop removal coal extraction," the network says. Only Credit Suisse met that criterion, receiving an A-minus, the highest grade given. Wells Fargo got a B-plus.

Deutsche Bank and GE Capital Corp. were the only banks to receive Fs. Citi and UBS both got D's on the report card, while Bank of America, JP Morgan Chase, Morgan Stanley and PNC each received a C, plus or minus. (Read more)

No comments: