Sunday, September 5, 2010

Funding for mountaintop removal mining is a thing Big banks will not do

Banking companies do not like the thought of loaning cash to companies that are just hurting the environment. Mountaintop removal mining is a destructive business just like this. Banks used to end up with a great profit after funding these companies. Environmental groups and court decisions have worked together to make that change. Banking institutions are held to the funding they do for environment destruction businesses for instance this. Banking institutions choose to do every little thing they can to please and keep customers. This is why numerous financial institutions have decided to stop lending to any companies that have risk of environmental damage. Article resource – Big banks backing away from financing mountaintop removal mining by Personal Money Store.

Banks lend to environmental destruction

Getting cash is not that hard. Mountaintop removal mining businesses will discover a way to get it. Credit is a thing banking institutions are considering more seriously as to where it will go. This means that climate change and other environmental difficulties for instance water quality standards are making the lending decision for financial institutions harder, says the New York Times. Wells Fargo thinks that mountaintop removal mining has received “considerable attention and controversy” for the business. The banking behemoth said its financing for mountaintop mining companies was “limited and declining.” The decision by Wells Fargo emulates comparable policy shifts by Credit Suisse, Morgan Stanley, J.P. Morgan Chase, Financial in! stitution of America and Citibank. The majority of the banking institutions have decided to stop lending to mountaintop mining corporations. If they didn’t determine that, they decided to reconsider whether or not to lend.

Mountaintop removal mining is the only reason coal is nevertheless cheap

On Monday, environmentalists from the Appalachian region implored the Obama administration to outlaw mountaintop mining. On September 27, you can expect to determine a rally by the group where the president was invited, reports the Associated Press. Forests have to be cut before mountaintop removal can start. Then explosives blast apart the rock. Next you have to have a special machine to scoop up 800 feet of mountaintop, but the machine has to be 8 stories high. Coal will be shown then. The earth left behind is dumped to the valleys below, covering streams and wildlife habitat. Operators say it’s the cheapest way to reach coal for electric power plants and supports tens of thousands of jobs. September 15 you are able to expect to determine a rally in Washington from the Appalachian coal industry that does not choose to lost jobs.

Numerous banks excited to make the loans

2007 was when the Rainforest Action Network, or RAN, started its work. It wanted to stop banking institutions from giving any funding to mountaintop removal mining companies. Organicconsumers.org reports the group’s efforts have helped persuade the top four financial institutions within the country to back from Massey Energy, a leading mountaintop mining company based in West Virginia. Massey Energy was involved in a mine explosion in April. This was the, Upper Big Branch mine, explosion that killed 29 miners. But other banks are eager to fill the financing void left behind. Bloomberg data shows the lead financers of Mountaintop removal mining are PNC and UBS. PNC finances mining businesses responsible for almost half of all environments removal coal mined in the United States of America.

More on this topic

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



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