Chain Bridge Bank
| Industry | Banking |
|---|---|
| Founded | 2007 |
| Founder | Peter Fitzgerald |
| Headquarters | McLean, Virginia |
Chain Bridge Bank, National Association (N.A.) is a United States nationally chartered bank headquartered in McLean, Virginia. Established in 2007 by former Illinois Senator Peter Fitzgerald, the bank serves trade associations, think tanks, lobbying firms, political committees, nonprofit organizations, other businesses, and individuals nationwide.
History
[edit]Chain Bridge was founded in 2007 by Peter Fitzgerald, two years after he was succeeded in the Senate by Barack Obama.[1] The bank was started and capitalized, in part, with family wealth.[2] Fitzgerald's father, Gerald F. Fitzgerald, previously chaired Chicago's Suburban Bancorp, which was sold to Bank of Montreal in 1994 for $246 million.[3] The extended Fitzgerald family has a long history in banking, having owned, co-owned, or managed approximately 57 commercial banks since the 1940s.[3]
Shortly after opening, Chain Bridge Bank cancelled a bricks and mortar branching strategy and instead shifted to online technologies, such as remote deposit capture, in order to provide bank services nationwide.[4][5] Thus, the bank only has one physical branch, which is location in McLean, 10 miles west of Washington, D.C.[6]
During the 2008 financial crisis, Chain Bridge Bank attracted significant client deposits due to its lack of bad assets and debt. Peter Fitzgerald stated in September 2008, "We're drowning in liquidity because people are pulling money out from other places and depositing it with us."[7] To accommodate clients' needs, particularly political campaigns requiring ready access to funds, the bank maintained high liquidity by investing deposits at the Federal Reserve or other liquid assets.[8]
In 2012, the bank created a mortgage division specializing in customized lending, with a focus on jumbo loans.
Political connections
[edit]Bloomberg Businessweek once called Chain Bridge Bank "The Most Important Bank in America," based on its political connections[9] Services and policies are tailored to the needs of political campaigns, based on Fitzgerald's personal knowledge of those needs from his own experience in politics.[2] The bank keeps its wire service open until 5 p.m., more than two hours later than most banks. All bankers are required to keep their cell phone numbers on their business cards.[10]
Presidential candidate John McCain, Fitzgerald's former colleague in the Senate, moved campaign funds to Chain Bridge in 2008.[11] By 2011, Chain Bridge was "fast becoming the preferred bank of the Republican Party."[12] In 2015, Bloomberg Businessweek headlined a story "Where Candidates Stash Their Cash" describing the bank's dominance in banking Republican presidential campaigns and allied committees leading up to the 2016 United States elections.[1]
The Trump Victory Committee is among the many political entities, mostly but not entirely Republican, that have held accounts at Chain Bridge.[13] The Richmond Times-Dispatch noted that Chain Bridge is uniquely dependent on its political business: "its deposits tend to swell in election years and dissipate as soon as ballots are cast."[2] The bank maintains higher than average asset quality and liquidity.[14]
Election lawyers have credited Chain Bridge with familiarity with Federal Election Committee regulations.[10] In 2021, Chain Bridge continued to "specialize[] in discreetly transferring campaign money."[15]
Leadership
[edit]- Peter G. Fitzgerald, chairman of Chain Bridge Bank, N.A. and Chain Bridge Bancorp, Inc.
- John J. Brough, chief executive officer and director of Chain Bridge Bank, N.A. and Chain Bridge Bancorp, Inc.
- David M. Evinger, president – risk management and director of Chain Bridge Bank, N.A. and Chain Bridge Bancorp, Inc.
- Joanna Williamson, chief financial officer, Chain Bridge Bank, N.A. and treasurer, Chain Bridge Bancorp, Inc.[16]
Board
[edit]The Chain Bridge Bank board of directors includes Michelle Korsmo, president and chief executive officer of the National Restaurant Association; Michael J. Conover, who established and led the financial risk management practice at KPMG; Yonesy F. Núñez, Managing Director and Chief Information Security Officer at The Depository Trust & Clearing Corporation and former Chief Information Security Officer at Jack Henry & Associates; and Mark Martinelli, who was EVP & Chief Audit Executive of Synchrony Financial.[17][18] Relations of Senator Fitzgerald, Thomas Fitzgerald and Andrew Fitzgerald, are also on the board.[18]
Clients
[edit]Chain Bridge banked the 2012 presidential campaign of Mitt Romney. Many super-PACs have also had accounts at Chain Bridge.[11]
In addition to campaigns and committees associated with McCain, Romney, and Trump, Chain Bridge clients have included several lobbying firms, the Susan B. Anthony List, the American Conservative Union (host of CPAC), American Crossroads, and Votesane PAC. Other political clients have included the presidential campaign of Rick Perry and political action committees led by John Boehner and Sarah Palin, as well as the PAC of the Blue Dog Coalition.[19]
2016 Republican presidential primary candidates who banked with Chain Bridge include Jeb Bush, Rand Paul, and super-PACs representing Ben Carson, Carly Fiorina, Scott Walker, Bobby Jindal, and Lindsey Graham.[2] The Republican National Committee and many state GOP parties have also been clients.[13]
As of January 2021, the following Republican senators, all of whom voted on January 6 to reject the results of the 2020 presidential election, maintained relationships with Chain Bridge: Roger Marshall (politician), Rick Scott, and Tommy Tuberville.
The Hawaii GOP told the FEC in February 2021 that it had a previously undisclosed bank account at Chain Bridge.[20]
One Chain Bridge client, the Trump Victory Committee, was being investigated for campaign finance reporting discrepancies as of April 2021. The Trump Victory Committee made disbursements to state GOP committees, who in turn passed identical disbursements on to the RNC.[20] This may have been an attempt to evade regulations limiting contributions that the RNC can receive.[13]
References
[edit]- ^ a b Mattingly, Phil (2015-07-22). "Where Candidates Stash Their Cash". Bloomberg.com. Retrieved 2021-12-26.
- ^ a b c d Mattingly, Phil (2015-08-15). "Candidates Stashing Cash in Small McLean Bank". Richmond Times-Dispatch. Retrieved 2021-12-26.
- ^ a b "Peter Fitzgerald has an old-fashioned approach to banking". fortune.com. May 13, 2009.
- ^ "Fattening Up: Select Group of Local Bank Pull Ahead of the Pack". Washington Business Journal. October 2010.
- ^ Ali, Ambreen (2011-11-07). "One Bank's Business Built on GOP Cash". Retrieved 2019-04-18.
- ^ "Address › Chain Bridge Bank". www.chainbridgebank.com. Retrieved 2021-12-26.
- ^ "The Volokh Conspiracy - More Skepticism about the Bailout". volokh.com. Retrieved 2019-04-18.
- ^ "Sage Financial Advisor". Daily Herald Suburban Business. January 2011.
- ^ Mattingly, Phil (Summer 2015). "The Most Important Bank in America". Bloomberg Businessweek.
- ^ a b "Super-PACs Push Funds Through Small Banks". Financial Times. June 7, 2012.
- ^ a b Pike, Kelly (2016-04-28). "Chain Bridge Bank has Handled Millions for GOP Presidential Contenders". Independent Banker. Archived from the original on April 4, 2017. Retrieved 2021-12-26.
- ^ Ali, Ambreen (2011-11-07). "One Bank's Business Built on GOP Cash". Roll Call. Retrieved 2021-12-26.
- ^ a b c Silverstein, Ken (2021-04-20). "Did the GOP's Favorite Bank Conspire with the Trump Campaign to Help it Evade Contribution Limits?". Washington Babylon. Archived from the original on April 20, 2021. Retrieved 2021-12-26.
- ^ "Peter Fitzgerald has an old-fashioned approach to banking - May. 13, 2009". archive.fortune.com. Retrieved 2019-04-17.
- ^ Silverstein, Ken (2021-04-20). "Did the GOP's Favorite Bank Conspire with the Trump Campaign to Help it Evade Contribution Limits?". Washington Babylon. Archived from the original on April 20, 2021. Retrieved 2021-12-26.
- ^ "People › Chain Bridge Bank". www.chainbridgebank.com. Retrieved 2021-12-26.
- ^ "Executive Bios & Photos". DTCC. Retrieved January 28, 2024.
- ^ a b "Board of Directors › Chain Bridge Bank". www.chainbridgebank.com. Retrieved 2021-12-26.
- ^ Ali, Ambreen (2011-11-07). "One Bank's Business Built on GOP Cash". Roll Call. Retrieved 2021-12-26.
- ^ a b Markay, Lachlan (2021-04-11). "Scoop: Trump Campaign Boosted by Unsuspecting State GOPs". Axios. Retrieved 2021-12-26.