According to a letter from Texas Attorney General Ken Paxton’s office, Citigroup may reportedly lose its license to insure municipal bond offerings in Texas for a policy that “discriminates” against the weapons business.
According to the letter, Paxton’s office argues that Citigroup violated SB-19, a legislation that prohibits government partnerships with firms that discriminate against the weapons industry, temporarily suspending the bank’s ability to generate funds by underwriting new securities offered by the city.
Following the Parkland High School massacre in 2018, Citigroup introduced a number of rules targeted at limiting clients who sold bump stocks, denied background checks, or sold guns to those under the age of 21.
The New York-based bank has claimed that its practices do not violate SB-19, but the attorney general’s office and the National Shooting Sports Foundation (NSSF) have claimed that the bank is a “SB-19 discriminator.”
Citigroup reportedly established new standards in 2018 that required corporate clients who sell weapons to complete background checks.
The decision was made in the aftermath of the Parkland High School massacre in Florida, in which an active shooter killed 17 people.
Citigroup imposed additional limits on firearm-related items, issuing regulations prohibiting bank clients from marketing bump stocks, selling to consumers who had not completed a background check, or selling to customers under the age of 21.