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JPMorgan, other anti-gun banks shut out of Texas Municipal Bond Business


mikew
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https://www.bloomberg.com/news/articles/2021-09-30/jpmorgan-says-texas-gun-law-blocks-bank-from-muni-bond-deals

 

The largest U.S. bank says it’s being shut out of underwriting municipal-bond deals in Texas after the state enacted a law banning government work with banks that limit business with the firearms industry.

 

Due to the legislation, JPMorgan Chase & Co. won’t bid on business with public entities in Texas, a key market where the bank underwrote $3.6 billion of municipal debt sales in 2020. Texas-based borrowers sold more than $58 billion of bonds in 2020, the most of any state after California, according to data compiled by Bloomberg. As part of bond offerings, borrowers often hire banks ahead of time and pay them a fee for underwriting the sales.

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The bank should start dealing with gun manufacturers. 

 

This is from the cited article. Maybe JPM should stop dealing with the auto companies. I am sure many of their employees and families have been killed, injured, or  affected by auto accidents.

 

Bank of America also announced in 2018 it would stop making new loans to companies that make military-style rifles for civilian use. Its policy came after dozens of employees lost family members or suffered other trauma related to mass shootings in the past few years. 

 

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On 10/4/2021 at 11:39 AM, Quiet Observer said:

The bank should start dealing with gun manufacturers. 

 

This is from the cited article. Maybe JPM should stop dealing with the auto companies. I am sure many of their employees and families have been killed, injured, or  affected by auto accidents.

 

Based on that premise, perhaps banks should not support businesses that make feminine hygiene products.  Look at all the women that got sick or died from Toxic Shock Syndrome years ago.  Or maybe the ovarian cancer cases "caused" by contaminated powders.  Or the opioid addiction problems.  Where does the blaming end?

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https://finance.yahoo.com/news/two-dozen-banks-sidestep-texas-164258227.html

 

More than two dozen banks have said they can continue working with Texas and its local governments in the wake of new state laws seeking to punish financial institutions that have policies aimed at the gun and fossil fuel industries.

 

 

Barclays Plc, TD Securities, Stifel Financial Corp., Wells Fargo & Co. and Jefferies Financial Group are among those certifying that that they don’t run afoul of the new laws, according to letters to the state attorney general compiled by the Municipal Advisory Council of Texas, an industry association. The advisory council posted the letters on its web site.

 

The assertions signal that there are plenty ready to fill the breach left at least temporarily by Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., all of which have seen business grind to a halt in Texas since the new laws took effect in September.

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Citigroup, which has temporarily stopped seeking Texas work, has said it believes it will be able to comply with the law. JPMorgan has said it currently can’t bid for most Texas work. Bank of America has declined to comment, but it hasn’t underwritten any Texas bond deals since the start of last month, according to data compiled by Bloomberg.

Bank of America and Citigroup are listed as not yet posting the letter regarding the effect of the gun and fossil fuel laws on their ability to do business in Texas.

 

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On 10/10/2021 at 2:07 PM, mab22 said:

Sad part is residents of the states can't buy directly from the states and make some more money, instead they have to go through "The Banks", glad to see they were shut out of Texas market.

 

 

Are you saying that residents should be able to buy directly from the state or that they should be able to get loans from the state? 

What about banks who are dealing gun  businesses, should the banks not be able to get that business?

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On 10/10/2021 at 3:56 PM, Quiet Observer said:

 

Are you saying that residents should be able to buy directly from the state or that they should be able to get loans from the state? 

What about banks who are dealing gun  businesses, should the banks not be able to get that business?

Residents should be able to buy binds directly from the state bypassing the banks.

Not sure I understand the second question. 
 

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