Financial institutions doing business in Asia are contributing at least $28 million to relief aid organisations working in Japan, and this is not counting individual staff donations, which will no doubt be significant. Furthermore, spokesmen from several major banks say they are still formulating their plans of action, so more money is likely to follow.
Goldman Sachs, alone, is donating ¥500 million ($6.1 million) to help the emergency relief effort in the wake of the devastating earthquake followed by an unprecedented tsunami that struck northeastern Japan on March 11.
J.P. Morgan is also digging deep into its pockets, committing $5 million in near-term relief and recovery efforts. And it is encouraging employees to contribute to the rescue effort being led by The American Red Cross and World Vision, with the bank matching these contributions.
“Our thoughts and prayers are with the people of Japan at this time,” said J.P. Morgan CEO and chairman Jamie Dimon. “This donation is to help both with immediate needs as well as the continuing relief and recovery efforts in the months ahead.”
The donation includes $1.1 million, which has been already been pledged by J.P. Morgan Chase Japan and $1 million to match contributions to The American Red Cross and World Vision by the bank’s more than 220,000 employees, including more than 1,300 in Japan. The balance of the $5 million commitment will be used to support charitable and relief organisations helping with the recovery effort. It has also set up procedures for customers to donate.
J.P. Morgan said this commitment will help with efforts such as setting up temporary shelters, offering medical assistance, helping with sanitation and handling the most pressing issues immediately following the disaster. Exact allocations will be determined in the coming weeks after a full assessment of the earthquake’s damage and the country’s needs.
Citi has established a disaster relief fund benefiting the Japanese Red Cross Society, with an initial contribution of ¥100 million from Citi’s Asia-Pacific businesses. The Citi Foundation has also pledged ¥100 million for disaster relief efforts, raising the bank’s total donation to $2.44 million in dollar terms. In addition, the bank has put out an employee appeal and James Griffiths, spokesperson for Citi, said: “We have had a lot of interest from employees to actually volunteer with the various agencies in Japan and are working on ways to do that.”
In a letter to bank colleagues, Vikram Pandit, CEO of Citi, wrote on Monday evening: “Our hearts go out to the people of Japan as they cope with one of the worst disasters in recorded history. Citi has been doing business in Japan since 1902 and our commitment to the country and its people is unwavering. We are doing everything we can to protect the safety of our colleagues and to help the Japanese people meet urgent humanitarian needs and, over the longer term, recover from the devastation.” Citi’s Asia-Pacific CEOs, Stephen Bird and Shirish Apte, sent out a letter to Asia’s staff underscoring the bank’s commitment and also asking staff to donate directly, as did Darren Buckley, CEO for Japan. Citi employee contributions to the fund currently exceed $100,000. And it, too, is collecting donations from customers.
Barclays Group is also pledging roughly $2.44 million in aid. An immediate donation is being made to the British Red Cross, which is supporting the Japanese Red Cross in disaster relief efforts and once a full assessment of the situation is made, the remainder will be directed through the Red Cross and other non-government organisations to support the country’s long-term recovery.
Bank of America Merrill Lynch, Daiwa, Mizuho Financial Group, Morgan Stanley, Nomura, Shinhan Financial Group, Shinsei Bank and UBS each will contribute ¥100 million, or $1.22 million.
For Bank of America, the breakdown is a ¥50 million grant to the American Red Cross, which is partnering with the Japanese Red Cross Society to help meet the immediate needs of survivors.
“We are determined to do our part in ensuring that the communities affected by this tragedy receive relief and refuge as soon as possible,” said Brian Moynihan, president and CEO of Bank of America. “We are coordinating with employees in Japan and across the globe on a number of initiatives aimed at encouraging a swift recovery.”
As relief efforts evolve in the coming weeks and months, the bank said the remaining ¥50 million will be directed towards long-term recovery, including the rebuilding of homes, schools and other critical infrastructure. In addition, Bank of America will match employee pledges to the American Red Cross’s Japan Earthquake/Pacific Tsunami Relief Fund, through the bank’s matching gifts programme, and will not limit its overall company donation.
A spokesman from Mizuho Financial Group said it will also donate ¥100 million, and noted that it is working to help its clients in the rehabilitation and reconstruction process, with special disaster-related services for its customers.
Morgan Stanley is donating its ¥100 million to the Japanese Red Cross Society. James Gorman, president and CEO of Morgan Stanley, said: “Our thoughts remain with the people of Japan — especially our Japan-based employees and their families. We stand ready to support them and our clients in any way possible.”
A Nomura spokeswoman said the bank is making ¥100 million immediately available to help support the emergency response, and is also facilitating a global donation scheme for employees who want to make personal contributions to the Red Cross in Japan.
Shinhan Financial Group is donating ¥100 million in relief aid to the Korean National Red Cross and relief organisations. A spokesman said it is “also involved in a wide range of financial support, fundraising and volunteer activities to get things back to normal”.
Shinsei Bank said it will donate ¥100 million to aid with the relief and recovery efforts for persons and areas affected by the earthquake. The donation will be made once the affected areas have completed preparations to receive donations. It is also working with customers affected by the earthquake regarding payments and loan applications, including a special disaster recovery assistance loan.
UBS executives said they will donate ¥100 million towards rebuilding efforts, teaming with the best suitable partners. In addition, according to its standard practice, it will match employee contributions.
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