The Texas gun law says its governments can’t work with companies unless they verify that they don’t “discriminate” against firearms entities. JPMorgan doesn’t finance companies that make military-style weapons for civilians.
Citigroup Inc. also suspended muni-bond work after the law took effect in 2021, but it was able to revive its underwriting work in November. The bank continues to underwrite bond deals and is the seventh-biggest underwriter of Texas muni deals this year, after ranking first in 2020, data compiled by Bloomberg show.
JPMorgan has long argued that it can comply with the firearms law. In September 2021, JPMorgan said its business practices should permit it to certify compliance with the firearms law. But it said the legal risk from the “ambiguous” law prevented it from bidding on most business with Texas public entities.
In May, Foley & Lardner LLP, a law firm representing JPMorgan, sent a letter to officials with the Texas attorney general’s office stating it believes the bank can verify compliance with the laws, marking a key step for the bank to return.
“JPMC’s risk-based framework does not discriminate against or prevent JPMC from doing business with any firearm entity or firearm trade association ‘based solely on its status as a firearm entity or firearm trade association’ without a traditional business purpose,” the letter said.
This article was provided by Bloomberg News.