(Bloomberg) -- Charles Schwab Corp. is scrapping its political action committee, one of the most dramatic steps yet as companies rethink their donations to elected officials following the Jan. 6 riot at the U.S. Capitol.
The brokerage will stop accepting contributions from employees to its PAC, it said in a statement Wednesday. Remaining funds from the PAC will be donated to the Boys & Girls Club of America and historically Black colleges and universities.
A wave of corporations have made changes to their PAC giving since a mob supporting President Donald Trump stormed the Capitol last week, resulting in five deaths including that of a Capitol Police officer. Some companies, including AT&T Inc. and Walmart Inc., stopped donations to Republican lawmakers who objected to certifying President-elect Joe Biden’s victory. Others, including BlackRock Inc. and JPMorgan Chase & Co., said they would pause donations to all elected officials.
“In light of a divided political climate and an increase in attacks on those participating in the political process,” Schwab said in its statement, “we believe a clear and apolitical position is in the best interest of our clients, employees, stockholders and the communities in which we operate.”
(Updates with additional information on political action committees in third paragraph.)
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