Wall Street Banks Cleared by Texas AG After Leaving NZBA

  • Ken Paxton has dropped long-time review of several lenders
  • Decision follows banks’ exit from Net-Zero Banking Alliance
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Texas Attorney General Ken Paxton dropped his threat to cut off big US banks from municipal-bond deals after a slew of Wall Street firms exited a controversial climate-finance alliance.

In 2023, his office announced that it was reviewing the policies of finance companies that were members of the Net-Zero Banking Alliance, which he has repeatedly criticized. That stemmed from Texas legislation that sought to punish financial firms for engaging in what it viewed as a “boycott” of the oil and gas industries. In recent weeks, JPMorgan Chase & Co., Bank of America Corp., Morgan Stanley and Wells Fargo & Co. have said they’re quitting the alliance.