- State AG’s review of bank energy policies disrupts borrowings
- AG ‘has put a strain on municipalities,’ Houston official says
Texas Attorney General Ken Paxton is sending shock waves through the state’s booming municipal-bond market, leaving borrowers and bankers alike on edge.
At least two banks, RBC Capital Markets and Wells Fargo & Co., were dropped from underwriting muni deals since Paxton said last week that he was probing the energy policies of a group of finance companies given commitments they’ve made to cut greenhouse gas emissions.
The review by Paxton, a rising star in the state’s Republican Party, targets eight Wall Street bond underwriters, including JPMorgan Chase & Co., Morgan Stanley, RBC and Wells Fargo. The group has handled more than a quarter of the $51 billion of muni sales from Texas cities and localities in 2023, data compiled by Bloomberg show. Those banks are now at risk of losing business in the Lone Star State.
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Bloomberg Markets
By Amanda Albright, Nic Querolo, and Danielle Moran
October 27, 2023