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Louisiana Bond Commission votes to ban Citi and BoA from state Muni bond issue
Posted on 8/17/18 at 10:03 am
Posted on 8/17/18 at 10:03 am
LINK
On the one hand, Merca frick yeah. But on the other hand, come on Louisiana.
quote:
Louisiana is using the bond market to stick up for the Second Amendment.
The state’s bond commission voted 7 to 6 Thursday to ban Bank of America Corp. and Citigroup Inc. from working on its upcoming debt sale because of the banks’ "restrictive gun policies," the state treasury said in a statement. Bank of America and Citigroup are the two top-ranked underwriters of long-term municipal debt, according to data compiled by Bloomberg.
"I personally believe the policies of these banks are an infringement on the rights of Louisiana citizens,” Treasurer John Schroder said in a statement. “As a veteran and former member of law enforcement, I take the Second Amendment very seriously."
On the one hand, Merca frick yeah. But on the other hand, come on Louisiana.
This post was edited on 8/17/18 at 10:04 am
11
Posted on 8/17/18 at 10:05 am to LSUTigersVCURams
that's dumb as hell
Posted on 8/17/18 at 10:06 am to LSUTigersVCURams
I'm sure this will be popular here, but virtue signaling in response to virtue signaling is dumb, particularly for a government entity.
Posted on 8/17/18 at 10:08 am to slackster
Couldn't agree more.
Posted on 8/17/18 at 10:09 am to LSUTigersVCURams
quote:
"Citi adopted this policy because we believe it is a positive and balanced step to promote gun safety without undermining free markets or Second Amendment rights," spokesman Scott Helfman said in an emailed statement. "It is disappointing that the taxpayers of Louisiana will be deprived from competitive bidding for necessary public works because the process has been politicized."
LA is excluding the two largest muni bond underwriters in the US, which is a dumb move, but let's not act like they were the first one to politicize it.
Posted on 8/17/18 at 10:22 am to LSUTigersVCURams
That’s just stupid
Posted on 8/17/18 at 10:25 am to LSUTigersVCURams
Politics and usual for Louisiana.
Posted on 8/17/18 at 10:33 am to slackster
quote:
LA is excluding the two largest muni bond underwriters in the US, which is a dumb move,
There are other underwriters who will do just as good of a job or better.
Posted on 8/17/18 at 10:35 am to LSUTigersVCURams
quote:
As a veteran and
I quit listening when you start your argument with this
Posted on 8/17/18 at 10:41 am to LSUTigersVCURams
Nothing surprising.
Posted on 8/17/18 at 10:41 am to lsu13lsu
quote:
There are other underwriters who will do just as good of a job or better.
If other underwriters did just as good of a job or better, Citi and BoA wouldn't be #1 and #2 across the country.
The bond commission isn't excluding them because they're bad a their job. They're excluding them because they don't like their political stance.
Posted on 8/17/18 at 10:43 am to LSUTigersVCURams
So they effectively taxed their base for the 2nd A. Great move.
Posted on 8/17/18 at 10:44 am to LSUTigersVCURams
I dont mind this one bit. Those banks put some legal business owners in a huge bind when they made up their stupid grandstanding policies. Its avout time it came back to bite them in the arse.
Posted on 8/17/18 at 10:51 am to slackster
quote:
If other underwriters did just as good of a job or better, Citi and BoA wouldn't be #1 and #2 across the country.
In an industry like this the #3 or below can provide just as good of service as the #1. They just may not do the volume. Just because someone does more deals in the government sector doesn't mean they are the best. In the government sector it is about who you know not what you know.
This post was edited on 8/17/18 at 10:56 am
Posted on 8/17/18 at 10:51 am to slackster
quote:
Citi and BoA wouldn't be #1 and #2 across the country
#1 and #2 in terms of size, not quality. Walmart is the #1 retailer in the US but nobody is going to say it's because of high quality standards. Well, you might.
Posted on 8/17/18 at 10:52 am to Clames
quote:
#1 and #2 in terms of size, not quality. Walmart is the #1 retailer in the US but nobody is going to say it's because of high quality standards. Well, you might.
Exactly
Posted on 8/17/18 at 11:01 am to Clames
quote:
#1 and #2 in terms of size, not quality. Walmart is the #1 retailer in the US but nobody is going to say it's because of high quality standards. Well, you might.
Outside of the political gesture, we'd still use Citi and BoA. There is now less competition for underwriting the upcoming $600 million issuance. There is no way to spin this as a good thing for LA taxpayers on a purely business standpoint.
FWIW, I wish Citi and BoA weren't virtue signaling either.
This post was edited on 8/17/18 at 11:08 am
Posted on 8/17/18 at 11:06 am to LSUTigersVCURams
This is like the bakers and gays. I don't want to do business with you because of my beliefs. OK, I get that.
But this will probably cost the state more money because it will be some good ole boy like uncle Ray-Ray getting the business and we all know he ain't the swiftest underwriter of long-term municipal debt
But this will probably cost the state more money because it will be some good ole boy like uncle Ray-Ray getting the business and we all know he ain't the swiftest underwriter of long-term municipal debt
Posted on 8/17/18 at 11:07 am to slackster
quote:
There is no way to spin this as a good thing for LA taxpayers on a purely business standpoint.
To expound on this:
quote:
Renee Boicourt, the commission’s financial advisor, said prohibiting the two banks that control a third of the nation’s government bond market would cost state taxpayers more money. She also noted that only Chicago considered tying gun control policy to bonds, but city officials backed off upon realizing the move would make bonds more expensive.
So Louisiana and Chicago politicians, world renowned for their forward thinking and efficiency, are the only two entities that have considered this logic. Even Chicago realized it was a bad idea for its constituents and backed off, but LA will proceed nonetheless.
This post was edited on 8/17/18 at 11:09 am
Posted on 8/17/18 at 11:25 am to LSUTigersVCURams
This is a cheap political stunt and it raises the cost of borrowing for Louisiana. Makes me wonder who has a family member, partner, or campaign donor that works in municipal lending.
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