JPMorgan Chase is complaining about a new Texas law it claims is "hurting its business". The nation's largest bank may lose out on millions of dollars’ worth of business in the Lone Star State.
Chase says it's being shut out of underwriting municipal bond deals due to a new piece of legislation: Senate Bill 19. The state law prohibits governmental entities from working with a business that discriminates against the firearm industry. Jason Isaac, with the Texas Public Policy Foundation, says that's exactly what Chase is doing.
“They’re taking anti-Texas narratives by denying capital to companies that produce oil and gas or maybe produce ammunition or firearms,” Isaac said.
He believes Chase’s refusal to work with the gun industry is part of a bigger movement called environmental, social, and governance (ESG) investing, which in many cases, targets fossil fuel investments. Isaac says Texas, in turn, is putting its foot down against Wall Street companies who are trying to appease a vocal minority of progressive activists.
“It’s too bad for them. We wish they’d change their political ideology, and maybe focus on returning investment to shareholders and being supportive of free enterprise,” Isaac added. “Unfortunately, they’re not, and it’s going to hurt their business.”