The office of Texas Attorney General Ken Paxton said Citigroup (NASDAQ:C) has discriminated against the firearms sector. Therefore, they announced a decision that has the effect of Texas halting Citi’s ability to underwrite most municipal bond offerings in the state.
Texas enacted a law in 2021 prohibiting government contracts with entities that discriminated against the firearms industry. Until further notice, The Texas AG will not approve any public security issued on, or after Wednesday, in which Citigroup purchases or underwrites the public security.
In 2018, Citigroup put restrictions on new retail business clients that sell guns, requiring that they pass background checks. That followed a high school shooting in Florida in February of that year in which 17 people died.