JPMorgan’s Dimon Criticizes Texas Laws, Firm Remains Committed Despite Bond Deal Disruptions

JPMorgan CEO Jamie Dimon has voiced concerns regarding Texas laws enacted in 2021 that impose penalties on banks that limit their business with the gun and fossil fuel industries. While recognizing Texas’s favorable business environment, Dimon cautioned that these regulations might harm the state’s reputation. The laws prohibit contracts with financial institutions accused of boycotting energy companies or discriminating against the firearms sector.

In light of these laws, Texas Attorney General Ken Paxton initiated an investigation into several Wall Street firms, including JPMorgan, Bank of America, and Wells Fargo, to determine if they have violated the energy law due to their involvement with the Net Zero Alliance. This investigation has caused disturbances in Texas’s municipal bond market, a vital source of funding for infrastructure projects across cities, schools, and hospitals.

Dimon underscored JPMorgan’s stance of neutrality, stating that the bank makes its decisions based on considerations of risk, legality, credit, and reputation. He denied any allegations of discrimination or boycotts against either the energy or firearms industries.

In spite of the ongoing issues and disruptions in bond transactions, JPMorgan intends to expand its workforce in Texas and other regions by hiring an additional 1,000 local bankers by 2025. Currently, the bank employs more than 30,200 people in Texas, with over 17,000 in the Dallas-Fort Worth area, as well as a health and wellness center at its Plano campus.

Research from the University of Pennsylvania indicates that these laws could result in substantial costs to Texas taxpayers due to restricted competition in the municipal bond market, which is valued at $4 trillion. Following Paxton’s investigation, RBC Capital Markets and Wells Fargo were removed from underwriting municipal deals that had been approved by the Attorney General’s Office.

Despite being the leading global financier of both fossil fuels and clean energy, JPMorgan was not included on the state comptroller’s list of companies like Credit Agricole SA that limit their business with the oil and gas sector. The firm maintains its commitment to Texas and recently organized a summit featuring prominent figures such as Matthew McConaughey and Dallas Mavericks owner Mark Cuban. Meanwhile, Governor Greg Abbott continues to advocate for the state’s pro-business policies.