The fourth poorest state in the United States pledges to pay more for financial services

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It is clear that the big banks and other financial institutions do not keep their social and environmental commitments seriously. West Virginia, however, takes them very seriously. Cut off your nose to seriously upset his face. So he’s going to help all those bankers and fund managers from BlackRock, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo to reduce their carbon footprint by spare them what we are sure were extremely enjoyable visits to Charleston and Morgantown.

[Treasurer Riley] Moore said those contracts would be terminated by the end of the year and the state would begin looking for new service providers that did not have policies targeting the coal industry…. “We hand over money to a financial institution that is generated by the fossil fuel industry,” he said. “At the same time, they are trying to decrease these funds. There is an obvious conflict of interest here. »

Seems like a good use of time for the treasurer of a state with a poverty rate of 17.4%, reducing competition for state contracts and eliminating some of the most competitive and probably cheapest players in its market. It certainly won’t increase the tax burden of the roughly 1.8 million (out of 1.81 million) in West Virginia who don’t work in the coal industry. (We’re sure JPMorgan will really miss out on that $46 million.) And, of course, Moore isn’t totally averse to conflicts of interest when it comes to making sure West Virginia pensions don’t are not even more underfunded than they are now.

The law does not affect the assets of the West Virginia retirement system.

Notably, Credit Suisse is still allowed to do business with West Virginia, which means losing $700 million to the governor is always a good thing to do.

West Virginia punishes banks that say they don’t support coal [NYT]
West Virginia Bans Five Financial Firms Over Fossil Fuel ‘Boycotts’ [Reuters]

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