Texas AG Says Citi ‘Discriminates’ Against Gun Industry, Halting Muni Business.

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 into effect in September 2021 but had revived that business two months later, saying it complies with the law. Paxton’s ruling ends a months-long probe into Citi’s corporate policy.

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Bloomberg Markets

By Danielle Moran

January 19, 2023



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