Texan Retreat: Banks Can Breathe a Sigh of Relief

In a surprising reversal, Texas Attorney General Ken Paxton has withdrawn his pressure on major U.S. banks in the area of municipal bond transactions. This decision follows the withdrawal of several leading Wall Street firms from a controversial climate finance alliance. In 2023, Paxton's office announced that it would review the policies of financial companies that are members of the Net-Zero Banking Alliance. This alliance has repeatedly been criticized by Paxton. This was based on a Texas law that sought to penalize financial companies for allegedly boycotting the oil and gas industry. In recent weeks, heavyweights like JPMorgan Chase, Bank of America, Morgan Stanley, and Wells Fargo announced their exit from the alliance.