Citigroup Snubbed on Muni Deal Over Gun Law, Costing Texas City $277,334
- Bank had best bids on muni sales by city of Anna, Texas
- City said the decision followed discussions with state AG
Signage is displayed outside a Citibank in San Antonio, Texas.
Photographer: Callaghan O'Hare/BloombergThis article is for subscribers only.
A Texas city declined to award a bond deal this week to Citigroup Inc. even though the bank submitted the most competitive bid, showing how Wall Street is still contending with a Republican-backed state law that punishes financial firms for taking on gun policies.
The bank was rejected after submitting the best bid among firms that sought to underwrite two bond sales totaling almost $100 million this week by Anna, Texas. It’s unusual for a municipality to reject a bank’s winning bid on a municipal-bond deal.