The New York-based bank has been under review by Attorney General Ken Paxton’s office because of a Republican-backed state law that aims to punish financial firms for instituting anti-gun policies.The Texas Attorney General’s office will decide by Jan. 13 whether Citigroup Inc. “discriminates” against the firearms industry, a ruling that will determine the bank’s ability to underwrite most municipal-bond offerings in the state.
Still, at least one city declined to award a bond deal to Citigroup even though it submitted the most competitive bid, signaling that governments are wary of working with the bank.
Citigroup initially suspended muni underwriting in the state for a few months after September 2021 as it worked to verify compliance.Citigroup ready to restart its Texas underwriting after certifying it meets gun law restrictions