JPMorgan Removed From Louisiana Muni Deal After Gun Scrutiny

JPMorgan Removed From Louisiana Muni Deal After Gun Scrutiny

(Bloomberg) — JPMorgan Chase & Co. was removed on Thursday from a $700 million Louisiana municipal-bond deal after the bank’s stance on guns drew criticism from state Republican officials. Most Read from Bloomberg The state bond commission voted to have Wells Fargo & Co. replace JPMorgan, the largest U.S. bank, as senior manager on the deal. The decision came after state Treasurer John Schroder, a Republican, said his team was scrutinizing JPMorgan’s gun policies after Chief Executive Officer Jamie Dimon told a Congressional committee earlier this year that his firm won’t finance companies that make military-style weapons for consumers. “I’m not selling our Second Amendment rights to corporate America,” Schroder, the panel’s chair, said at the meeting in Baton Rouge. In 2019, Louisiana began asking banks whether they have policies that infringe on citizens’ rights to bear arms as part of their application to underwrite bond deals. At the time, JPMorgan said it didn’t. Schroder said his office sent a new “qualifying question” to banks to participate in the bond sale asking them whether they do or do not finance the manufacture of military-style weapons for civilian use. JPMorgan didn’t submit an answer to that query, and that lack of response led to their disqualification from underwriting the bond sale, Schroder said. A spokesperson for JPMorgan didn’t have an immediate comment after the vote Thursday. JPMorgan Risks Losing Louisiana Muni Business Over Gun Stance Originally, JPMorgan was chosen to underwrite the bonds after offering a lower fee than other […]

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