Citi Again Faces Texas Ban Over Gun Law, Whipsawing Muni Work

Citigroup Inc.is once again facing an ouster from the booming Texas municipal-bond market after the state’s Attorney General Ken Paxton’s office determined the bank “discriminates” against the firearms industry.

The ruling indicates that the New York-based bank runs afoul of a Republican-backed law passed nearly two years ago that bars most government contracts with companies that engage in anti-gun business practices. The decision appears to halt the bank’s ability to underwrite most municipal-bond offerings in the state.

It’s a whipsaw moment for Citigroup. The bank had temporarily halted its work in the Texas muni market after the law went ...