Republican-led states have policies to punish Wall Street to combat gun control, climate change,diversity, and other social issues. Unleashed the propulsion. In a painstakingwarning to companies participating in social debates,
abortion rightsare ready for the next frontier.
State legislature agenda, according to a Reuters analysis of official documents, this year is 17 conservatives that punish such company policies compared to about 12 such measures in 2021. There are at least 44 bills or new legislation in the led state and statements.
Some of the individual moves have been reported, but the scale and speed at which such "unawakening" state laws and policies are skyrocketing, and the challenges they create for Wall Street businesses. Will be discussed in more detail here first. time.
The Merriam-Webster dictionary defines "awakening" as recognizing and actively paying attention to issues of racial and social justice, but conservatives are progressive. Often used to despise a good policy. The term is gaining attention as the United States becomes politically polarized over issues such as racial justice, LGBTQ rights to the environment, and the COVID-19 vaccine.
Reuters has counted the bills and state laws considered in 2021 and 2022, but some state officials are also using executive power to punish Wall Street.
The increase in restrictions is most prominent in the American culture war. US companies are forced to tackle the hot button problem with pressure from workers and investors and potential backlash from conservative policy makers
This year, West Virginia and Arkansaw, for example, Riley Moore, a Republican finance officer in West Virginia, and Arkansaw media reports that due to their cultural stance, Black Rock in certain services. I stopped using it.
In Texas, JPMorgan Chase, Bank of America, and Goldman Sachs passed a law last year banning "boycotting" energy companies and "discriminating" the firearms industry. Excluded from the municipal bond market. New business with the state.
In many cases, this measure targets a variety of enterprises and limits their ability to run state-owned enterprises. However, financial institutions play a vital role in the economy and have become a major target as many have shown their initial stance on issues such as fossil fuel and firearm financing.
Republicans say that the policies of such companies are legal It states that it will rob the company of capital.
"They are using the power of their capital to push their ideas and ideologies down to the rest of us," Moore said. He spearheaded a law passed in March, refusing to do business with banks that "boycott" fossil fuel companies, and promised to bring together officials from 16 other states to adopt a similar policy. did.
After the Supreme Court revoked the right to federal abortion last month, several major financial companies intervened to cover thetravel expensesof employees seeking abortion, and the Republicans It could grow asking for sanctions on Wall Street with an "awakened" stance.
Republican Texas Parliamentarian Briscoe Cain has planned a law that outlaws such compensation and prohibits companies that provide it from receiving Texas businesses and contracts. Said that.
"Companies operating in Texas cannot subsidize abortion or abortion travel in any way," Cain told Reuters by email.
No boycott
According to an interview, new regulations allow financial companies to operate in a variety of states, from underwriting bonds to managing state funds, deposit accounts and government credit cards. Will be difficult to do. There are more than a dozen industry sources, bank lobbyists and lawyers.
Public procurement data show that each such contract can be worth millions of dollars.
For example, JP Morgan undertook $ 3.2 billion worth of Texas municipal bonds last year, but so far this year it was $ 210 million. The Refinitiv data shows. Bank of America, which undertook $ 3.7 billion in Texas municipal bonds last year, is doing nothing this year.
Meanwhile, some SMEs, including Ramirez&Co. and Loop Capital Markets, have soared more than 10th in the Texas municipal bond market lead manager ranking so far this year based on transaction value. ..
Sure, some democratic-led states will also scale It is supposed to be. Washington has offered a "climate resilience fee" for institutions funding fossil fuel projects. California is considering a bill to prevent the country's largest pension system from investing in fossil fuel companies.
However, according to reviews and sources, Democratic-led states are not pursuing too many disciplinary measures.
"You'll see more of these statutes on one or the other side of the coin," said John Crossley, partner of energy-focused K&LGates. "It will make it more and more difficult for people to operate in these markets."
A spokesperson for the financial company mentioned above either declined to comment or did not respond to requests for comment.
Financial companies say they aim to provide comprehensive medical benefits. They also argue that government regulation will push up the costs of Americans and disagree with the boycott characterization of their policies.
For example, BlackRock, the world's largest asset management company and often the target of Republican attacks, has participated in various efforts to reduce greenhouse gas emissions. On the other hand,told Texas officials that it supports fossil fuels. Fuel company.
"The economic and financial system is that banks of all sizes are from the American Bankers Association. Joseph Pig, Senior Vice President, said:
Promoting Awakening Prevention
According to reviews, "Awakening Prevention" measures are a tradition in Texas and Kentucky. It is becoming established not only in traditional conservative bases, but also in the so-called purple states where there are voters. Democratic or Republican Swing – Arizona, Ohio, etc.
The number of problems targeted by such countermeasures is increasing rapidly.
Guns and energy were the focus of about 12 state laws and bills last year and at least 30 legislative measures this year.
But this year, social and social and including "divisional concepts" such as critical race theory (the academic theory that racial prejudice is incorporated into US law and institutions). There were more than 12 bills related to other issues. The use of the COVID-19 vaccine, or "social credit score," has been shown by Reuters analysis.
The latter is the theory that businesses may take into account individual political tendencies when providing and pricing services.
For example, in April, Florida demands training from companies that may cause staff to feel "guilty" or "painful" due to past actions by members of the same race. I made that illegal. Florida Governor Ron DeSantis, who announced the bill, has flagged Bank of America as one of those companies conducting such "awakened" training.
A bank spokesman said the material was provided to hundreds of companies by nonprofits and was not part of the bank's training material.
The measures considered do not cover corporate abortion policies, but Cain expects other Republican-led states to pursue business restrictions on companies with such policies. Stated.