Most Americans live far from the path of the Dakota Access Pipeline—they won’t be able to visit the encampments on the Standing Rock Sioux reservation where representatives of more than 200 tribes have come together in the most dramatic show of force of this environmental moment. They won’t be able to participate in the daily nonviolent battle along the Missouri River against a $3.7 billion infrastructure project that threatens precious water and myriad sacred sites, not to mention the planet’s unraveling climate.
But most of us live near a bank.
Maybe there’s a Citibank branch in your neighborhood. Or Wells Fargo or Bank of America or HSBC. Maybe you even keep your money in one—if so, you inadvertently helped pay for the guard dogs that attacked Native Americans as they tried to keep bulldozers from mowing down ancestral grave sites.
Maybe you have a retirement plan invested with Goldman Sachs or Morgan Stanley—if so, you helped buy the pepper spray that the company used to clear the way for its crews as they cleared the right of way straight to the Missouri River.
Perhaps you bank overseas. Credit Agricole? Deutsche Bank? Sumitomo? Royal Bank of Scotland? Barclays? Yeah, them too.
In fact, virtually every name in the financial pantheon has extended credit in some form to the Dakota Access Pipeline project, according to a remarkable dossier assembled by the organization Food & Water Watch. It shows a credit line of $10.25 billion (that’s a b) for the companies directly involved in building the project—from 38 banks—a list of names that, the group adds, “might give you flashbacks to the 2007 financial crisis.”
Sporadic protests have begun at some of the banks—activists occupied a Vancouver branch of TD Bank and across the continent in Philadelphia held a protest outside another of the giant’s outlets. The same thing happened at a Citibank in downtown Chicago.
“It’s unlikely that Citibank customers support poisoning indigenous peoples’ water, desecrating sacred burial sites, or contributing to global climate change,” said Gloria Fallon of Rising Tide Chicago. Which is true.
But banks love these kinds of deals precisely because they’re so capital-intensive. (And because they’re financially stacked in favor of the developers: Federal tax breaks worth more than $600 million helped make the balance sheet for Dakota Access Pipeline.)
The key Dakota Access Pipeline loan, said Rainforest Action Network’s Amanda Starbuck, is still pending. It’s a multibillion-dollar line of credit, but only $1.1 billion of the loan can be doled out until the company “resolves certain governmental permits.” Citi, Mizuho, Bank of Tokyo MUFJ, and Mizuho Bank are leaders on that loan.
Many of these banks may be vulnerable to pressure. For one thing, they’re eager to appear green: Bank of America, for instance, recently announced plans to make all its bank branches “carbon-neutral” by 2020. Which is nice—solar panels on the roof of the drive-thru tellers are better than no solar panels. But as Starbuck said, it’s basically meaningless stacked up against Bank of America’s lending portfolio, chock full of loans to develop “extreme fossil fuels, which are simply incompatible with a climate-stable world.”…
Read the whole editorial here.