Moneyline Takes a Crack at TXU

Written by Japhet

Topics: Coal

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Fortune’s Mark Gunther took a swipe at investment bank Merrill Lynch last week, calling them out on their support of the controversial TXU coal power plant deal down in Texas which will make TXU the largest corporate emitter of greenhouse gases in North America.

Its hard to really gauge how “green” Wall St. is, especially when deals like this involve 3 of the major investment banks in this hemisphere. The lead arrangers of the project are Merrill Lynch, Citigroup, Morgan Stanley are actively behind TXU’s coal project. Meanwhile, both banks are preaching how they support green initiatives in communities to support environmental awareness. Gunther gets to the heart of where the priorities are for these type of banks.

Citigroup was more forthcoming. Pam Flaherty, senior VP of global community relations, said the bank’s environmental policy puts projects in the developing world through rigorous screens. Environmental groups, including Friends of the Earth and RAN, have praised Citi’s policy, as well as its willingness to collaborate with green groups.

But when it comes to projects in America, they don’t? Why wouldn’t a bank like Merrill Lynch, or Bank of America, who have the clout and the ability to shape markets and affect change all over the planet, be able to say no to a project that will injure the citizens and environment of its own country? I hope the gold is worth it…

TXU has just announced funding for University of Texas-Arlington’s smog research, specifically around NOx (nitrogen oxide) the key component in smog. Whats impelling such a philanthropic move?

“Given the size and scale of TXU’s power development program in Texas, we will need advanced operational tools and techniques to make certain we meet our environmental commitments,” said Greene. “With the help of researchers at UT Arlington’s top-flight College of Engineering, TXU will develop a first-of-its kind NOx reduction management system that will result in significant NOx reductions here in Texas.”

Not only is TXU ignoring CO2 and mercury pollution in it’s attempt to solve the problem technologically, but they are also admitting that their current plan is no where near ready to be considered for approval by the EPA. While we appreciate TXU sinking milllions more into finding more ways to burn coal, it’s high time that we figure out another source of energy besides coal and oil.

TXU, instead of funding this program why not sink millions into becoming the world’s leading wind-power or solar power company?

And how great it would be if banks like Merrill Lynch, Bank of America and Morgan Stanley actually had the gall to start supporting these endeavors on a massive scale instead of being drawn to these projects like vulchers to rotting flesh. Here’s to holding up the banner of a higher goal.

6 Comments For This Post I'd Love to Hear Yours!

  1. David Loudenback says:

    Greedy little buggers. Willing to sacrifice the common good for their own profit. Maybe they believe that if they have enough money they will be able to maintain their standard of living when the world hits the coming wall of climate change.

  2. Joseph J. Robles says:

    Profits before People . . . the never ending mantra of the right-wing, greedy corporate, PIGS…….. When the respiratory therapists tells ya that the reason your grandchildren have LUNG DISEASE…is due to the FACT that levels of pollutants has risen, well then how WILL YOU FEEL ? ? ? Particularly knowing that your monetary greed assisted in the creation of global climate change. Sad, very sad.

  3. I am tired and disgusted of corporate greed destroying me and the planet. This has to stop, and our government has to stop allowing this to happen.

  4. Wennie Chang says:

    By financing TXU’s project to build coal power plants, it would spelled disaster to the world. It would be the biggest contributor of global warming. As you know, global warming has caused unusual weather changes that took the lives of thousands of people, animals, and destroyed thousands of buildings which also included people’s homes. Survivors and animals that survived were left abandon and stranded.

    In addition, global warming has caused our temperatures to soar dramatically. And people and animals were forced to contend with these heat waves that brought terrible suffering. Heat waves have killed thousands of people, as in the recent case in Europe, where thousands of Europeans died from baking intense hot temperatures. Other people died here in the U.S. Seniors, especially, were vulnerable to these heat waves and some died from it.

    Global warming has cause the rapid melting of the sea ice that polar bears and other animals depend on for their survival. Because of global warming polar bears are having difficulty in hunting for prey. They are forced to swim far distances out in the sea water to hunt for prey. Unfortunately, they never succeed, then drowned and perished in the cold sea water.

    Global warming has caused big droughts which affected farmer’s crops and affected his livestock too because they don’t have any supply of water to drink from. Farmers were forced to auction off their livestock. They lost money in their livestock and from their failed crops.

    we must rescind our plans to finance TXU’s coal power plant projects. We are all working towards curbing global warming so we don’t experience the impacts of global warming as in the past years. Companies such as UPS and others are working to achieving a clean healthy environment so that we can halt the impacts of global warming.

  5. Toben says:

    Nice to see a majorly influential financial column begin to address the need to reconcile economy with ecology, not to mention directly call out the absurdity of such a disastrous endeavor by TXU!

  6. Crack says:

    Every time i come here I am not dissapointed, nice post

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