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New Accountable.US Analysis Reveals Big Banks Pocketed Billions in Income During COVID-19 While Having A History of Evading Taxes

Washington, D.C. — As the Senate Banking and House of Representatives Financial Services committees hold two hearings this week with the CEOs of the six largest banks, government watchdog Accountable.US released an analysis finding big banks and their CEOs continued to collect billions in company stocks and salaries during the pandemic — and have long histories of trying to avoid corporate taxes. The hearings come as Republican lawmakers and big businesses oppose President Biden’s plans to increase taxes on wealthy corporations and high earners to help pay for much-needed investments in child care, paid family leave, education, and more to build a stronger economy.  

 Accountable.US found that JPMorgan Chase, Citigroup, Morgan Stanley, Bank of America, Wells Fargo and Goldman Sachs took in billions in profits and paid their CEOs tens of millions in compensation, even during the pandemic-influenced year of 2020. Their profits continued to thrive during COVID-19 — a period in which economic inequality only worsened, especially in communities of color. 

“Even during a pandemic and severe economic downturn, big banks still managed to post massive profits as families in every corner of the country battled food insecurity and poverty. Adding insult to injury, these banks have a history of exploiting tax havens and loopholes to avoid paying their fair share in taxes — money that could be invested in priorities that make the economy work for everyone, not just the rich,” said Kyle Herrig, president of Accountable.US. “These billionaire banks are drowning in cash, and sadly, many Republicans in Congress don’t think they should pay a penny more in taxes — even taxes they already owe. These are usually the same people that say we need to cut Social Security and Medicare and can’t afford new roads or basic childcare.”  

Read the full analysis from Accountable.US HERE.  

KEY POINTS:  

  • JPMorgan Chase reported over $50 billion in net income for 2020 and paid its CEO, Jamie Dimon, $31,664,554 in total compensation. 
    • A 2013 Citizens For Tax Justice Report Found That JP Morgan Held $25.1 Billion In Unrepatriated Income In Offshore Tax Havens With An Implied Tax Rate Of Just 23%, Far Less Than The Corporate Tax Rate At The Time. 
       
  • Citigroup reported $11 billion in net income for 2020 and paid its CEO, Michael Corbat, $22,984,090 in total compensation. 
    • Citigroup was fined $600,000 in 2009 by the Financial Industry Regulatory Authority (FINRA) for helping foreign clients evade dividend taxes. 
       
  • Morgan Stanley reported nearly $11 billion in net income for 2020 and paid its CEO, James Gorman, $29,558,524 in total compensation. 
    • Morgan Stanley has a history of stashing billions in offshore accounts and tax havens and has been caught and fined by authorities in the UK and the Netherlands for its tax avoidance schemes, including the “biggest tax theft in the history of Europe.” 
       
  • Bank of America reported over $17 billion in net income for 2020 and paid its CEO, Bryan Moynihan, $25,940,571 in total compensation. 
    • The Massachusetts Appellate Tax Board ruled in 2008 that Bank of America owed the state $53 million after two of its real estate trusts engaged in “Sham Tax-Avoidance Transactions.” 
    • Bank of America’s UK Branch Paid No Corporate Income Tax In 2014. 
       
  • Wells Fargo reported over $3.3 billion in net income for 2020 and paid its CEO, Charles Scharf, $20,392,046 in total compensation. 
    • An Oxfam Report found that Wells Fargo stashed $1.8 billion in offshore accounts between 2008 and 2014 and evaded over $6 billion in U.S. taxes in the same period. 
       
  • Goldman Sachs reported over $9 billion in net income for 2020 and paid its CEO, David Solomon, $23,940,657 in total compensation. 
    • In 2018, Goldman Sachs was fined €89 million by UK Courts for avoiding €226 million in corporate taxes in a 2006 tax avoidance scheme.

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