Texas AG to halt most of Citigroup's municipal offerings on gun law row

Jan 18 (Reuters) – Citigroup Inc (CN) has discriminated from the firearms sector, the place of work of Texas Lawyer Common Ken Paxton claimed, generating a final decision that “has the impact” of Texas halting Citi’s capacity to underwrite most municipal bond choices in the point out.

Republicans have been ramping up pressure on the finance marketplace more than environmental, social and governance (ESG) financial commitment techniques. Texas enacted a regulation in 2021 prohibiting federal government contracts with entities that discriminated against the firearms field.

“It has been decided that Citigroup has a plan that discriminates against a firearm entity or firearm trade association”, the assistant legal professional normal main of the general public finance division of Texas AG wrote on Wednesday in the letter seen by Reuters.

“Citi’s designation as an SB-19 discriminator has the outcome of halting its means to underwrite most municipal bond offerings in Texas,” Paxton’s office informed Reuters, referring to the law.

Right up until even more recognize, The Texas AG will not approve any community stability issued on or soon after Wednesday in which Citigroup purchases or underwrites the public stability, she extra in the letter.

“Citi does not discriminate in opposition to the firearms sector and feel we are in compliance with Texas legislation”, a Citigroup spokesperson mentioned in an emailed assertion to Reuters, including that the firm would continue to be engaged with the Texas AG business office to evaluate possibilities.

In 2018, Citigroup set restrictions on new retail business enterprise clientele that sell guns, requiring that they go background checks. That adopted a significant college capturing in Florida in February of that 12 months in which 17 people today died.

Bloomberg Information initially noted the news on Thursday.

Reporting by Lavanya Ahire and Akanksha Khushi in Bengaluru,Further reporting by Urvi Dugar and Mrinmay Dey Modifying by Bradley Perrett, Bernadette Baum and David Gregorio

Our Specifications: The Thomson Reuters Trust Principles.

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