Treasury, Courts Don’t Like Oklahoma’s Anti-Woke Banking Law
States telling banks who they must or mustn’t have as customers is becoming a thing.
The states, Oklahoma among them, aren’t trying to force banks to sidestep money laundering operations or deposits from terrorist groups. They’re trying to advance political ideologies by further restricting one of the nation’s most heavily regulated industries.
Courts aren’t having it. Neither is the U.S. Treasury Department.
As Paul Monies reported, Oklahoma passed a law prohibiting state entities, particularly pension funds, from doing business with banks that decide they don’t want to invest in fossil-fuel energy companies. That pleases Oklahoma’s oil and gas companies, which contribute greatly to the state’s economy (as well as political campaigns), but it also limits where pensions funds can place employee retirement money to get the best return.
One state retiree sued, and the district court put a temporary halt to enforcement of the law while the legality of it all gets hashed out. Attorney General Gentner Drummond took over the case but the state lost again Friday, when the court ruled the injunction would stand. Drummond said he would appeal.
States including Texas, Kentucky and West Virginia have similar laws and face similar obstacles.
Florida took the idea of telling banks who their customers will be a step further, requiring myriad disclaimers and banning the sale of ESG bonds, a popular way to fund renewable energy projects or lower debt costs for borrowers if they meet gender diversity or greenhouse gas emissions targets.
Florida’s law, already criticized for restricting municipalities’ ability to borrow money at the most favorable rate, was singled out by the U.S. Treasury Department on Thursday in a letter to lawmakers warning of the effects of anti-ESG legislation throughout the country.
The letter said it would be an unsafe and unsound practice for banks to consider non-financial factors when doing business and that such laws create uncertainty and national security risks.
More worth reading:
“Twisters” Hits it Big
Oklahoma-set “Twisters” had a whirlwind of an opening weekend, grossing $80.5 million, about 60% more than expected. The New York Times joined in with a feature about Reed Timmer, a 44-year-old storm chaser from Lexington, who was the inspiration for Tyler, one of the film’s lead characters. [NYT]
NTSB Cites Marijuana in Tishomingo Teen Deaths
A horrific crash that killed six high school girls in Oklahoma two years ago has the head of the U.S. National Transportation Safety Board urging parents to warn teenagers about the risk of driving after using marijuana. [AP]
Three Large Districts Won’t Follow Bible Order
Three of Oklahoma’s largest school districts — Norman, Moore and Stillwater — are among those that have publicly said they won’t be following state schools Superintendent Ryan Walters’ directive that the Bible be taught in every Oklahoma classroom. [The Oklahoman]
“We got twins! Twins!”
— Brandon Perea, as Boone, in “Twisters”
Ciao for now,
Ted Streuli
Executive Director, Oklahoma Watch
tstreuli@oklahomawatch.org
