The CEO of the country’s largest bank warned recent actions by Texas officials might make it more difficult for cities and counties to raise money for schools, hospitals, airports, roads, and other new projects.
In an October letter, Attorney General Ken Paxton’s office notified major companies JPMorgan Chase, Wells Fargo, Fidelity, TD Bank, and others the state was investigating whether they were violating one of those laws. Specifically, at a small business summit in Frisco, CEO of JPMorgan Chase, Jamie Dimon, warned the state action may discourage investment in the state and lead to higher interest rates and borrowing costs.Dimon argued the state runs the risk of ruining its pro-business reputation if it puts its thumb on the scale of the free market too much.According to Bloomberg, local governments have received $51 billion in investment from major financial institutions.