By Texas has made the decision to ban Barclays from participating in the state’s municipal bond market due to concerns regarding the bank’s environmental, social, and governance (ESG) policies. The ban came after Barclays failed to provide the requested information about its net-zero carbon emissions policies.
Barclays, in response to the ban, chose not to comment on the matter. The bank had been previously identified as a potential “fossil fuel boycotter” under Texas law. When asked about their ESG commitments, Barclays remained silent, prompting the ban from the State Attorney General’s office.
The Attorney General’s Public Finance Division has since declared that any public security issued from this date forward, in which Barclays purchases or underwrites the security, or is involved in a covered contract related to the security, will not be approved.
In November, the attorney general’s office initiated a review of several banks, including Bank of America, JP Morgan Chase, Morgan Stanley, and Wells Fargo. However, none of these banks have reported an inability to respond to the state’s inquiries, unlike Barclays.
Texas has been taking actions against banks for their policies related to social issues. Previously, Citigroup was barred from underwriting most municipal bonds in Texas due to their alleged discrimination against the gun industry.
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