Louisiana’s plans to finance about $600 million in interstate projects got tangled up today in a dispute over moves by two Wall Street banks to restrict gun sales by their business customers.
The State Bond Commission, which regulates the roadwork financing plans, disagreed about how and if Louisiana should retaliate against Citigroup and Bank of America for their firearm restriction policies.
“Do I, as your state treasurer, want to do business with companies that impose these kinds of policies?” said Treasurer John Schroder, the Republican who chairs the commission. “And the answer to me was clearly no.”
The quarrel didn’t derail plans to jumpstart the projects: a widening of Interstate 10 in Baton Rouge, a new exit from Interstate 20 into Barksdale Air Force Base, and an I-10 interchange to serve a new terminal at the New Orleans airport. Louisiana will use federal construction bonds, repaid over 12 years with federal highway dollars.
Gov. John Bel Edwards’ administration successfully objected to language pushed by Schroder and Republican Attorney General Jeff Landry that was aimed at keeping the banks from being eligible to work as underwriters on the interstate financing deal.
The Democratic governor issued a statement describing himself as “a staunch defender of the Second Amendment” and calling today’s meeting “an ugly display of political posturing that could have jeopardized a massive infrastructure plan for the state of Louisiana.”
Anger at the banks is expected to again emerge as the commission works through the monthslong process to piece together the road deal, including when financing partners are chosen in July.
In March, in response to a deadly Feb. 14 shooting at a Parkland, Florida, high school, Citigroup announced it would end relationships with businesses and clients that sell firearms to people who haven’t passed a background check or anyone under the age of 21. The bank also will not allow its customers to sell rapid-fire devices known as bump stocks and high-capacity magazines. Bank of America said it will stop doing business with certain gun manufacturers.
