(Reuters) – Wells Fargo & Co’s policies around the firearm industry are being probed by the Texas Attorney General’s office, the company said in an emailed statement on Thursday.
The letter sent by Leslie Brock, chief of the AG’s public finance division, to lawyers who work on bond deals in Texas said that officials are seeking to determine whether Wells Fargo has a practice or policy that “discriminates against a firearm entity or firearm trade association,” Bloomberg News reported.
Reuters could not immediately verify the contents of the letter.
“We have been cooperating with the Texas AG’s Office and continue to affirm our standing letter that was provided to that office,” the company said.
The public finance division, which oversees most municipal bond offerings in Texas, will decide by Aug. 25 whether the bank is a “discriminating company,” according to Bloomberg News.
Brock’s letter said the AG will not block deals that Wells Fargo manages that are already in the works from closing before it makes the decision, as long as the bank confirms via email that it is compliant with the legislation, Bloomberg reported.
“If we determine that Wells Fargo is a discriminating company under Senate Bill 19, we will not approve any public security issued on or after that date in which Wells Fargo purchases or underwrites,” the report quoted Brock as writing in the letter.
The Texas Attorney General’s office did not respond to a Reuters request for comment on the report.
In January, it said that Citigroup Inc had discriminated against the firearms sector, making a decision that “has the effect” of Texas halting Citi’s ability to underwrite most municipal bond offerings in the state.
(Reporting by Yana Gaur and Juby Babu in Bengaluru; Editing by Kim Coghill)
