Bloomberg Law
Sept. 1, 2021, 10:00 AM

Texas Puts Banks in Tight Spot With New Law Backing Gunmakers

Lydia Beyoud
Lydia Beyoud
Corporate Governance Reporter

Texas is taking a hardline approach to enforcing a new law requiring banks underwriting the state’s hot municipal bond market to certify by Wednesday that they don’t exclude the firearms industry.

Some of the country’s largest banks, including Bank of America, Citibank, and JPMorgan Chase underwrite municipal and state debt in Texas, but also have tailored restrictions that appear to bar financing to certain parts of the gun industry, such as companies that make or sell bump stocks or sell to customers under 21.

Republican Attorney General Ken Paxton’s office isn’t having it.

Leslie Brock, the state’s assistant attorney general ...

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