Banks Story Archives - West Virginia Public Broadcasting

Warned By Treasurer, 2 Banks Avoided List Of Restricted Institutions

Treasurer Riley Moore added HSBC, Citigroup, TD Bank and Northern Trust to its list of financial institutions barred from state contracts. BMO and Fifth Third were not added to the list.

West Virginia’s Treasurer added four banks to a list of restricted institutions this week, but two more were left off.

Treasurer Riley Moore added HSBC, Citigroup, TD Bank and Northern Trust to its list of financial institutions barred from state contracts.

They join five others that Moore determined were boycotting fossil fuel investments.

However, two more banks that received warning letters from Moore in February, BMO and Fifth Third, were not added to the list.

Both banks replied to Moore that they were not shunning such investments. Senate Bill 262, enacted two years ago, enabled the Treasurer to review banks’ environmental, social and governance, or ESG policies.

Of the nine banks now on the list, six are among the top banks financing coal-burning utilities, according to the Sierra Club.

They are Goldman Sachs, Chase, Morgan Stanley, Wells Fargo, Citigroup and TD.

Other states, including Kentucky and Texas, have passed similar laws in opposition to ESG policies that are perceived to discourage fossil fuel investments.

BlackRock, another bank blacklisted from state contracts, is financing EQT, the biggest natural gas producer in the state and the biggest customer of the nearly finished Mountain Valley Pipeline. EQT announced last month it is buying the builder of the $7.5 billion pipeline, Equitrans Midstream.

State Treasurer Warns 6 Banks They May Be Added To ‘Restricted’ List

Treasurer Riley Moore has sent letters to six financial institutions warning them their environmental, social and governance policies could cost them state contracts.

West Virginia’s treasurer has warned a new set of banks they may be barred from engaging in contracts with the state.

Treasurer Riley Moore has sent letters to six financial institutions warning them their environmental, social and governance policies could cost them state contracts.

The restricted financial institutions list arose from Senate Bill 262, which became law in 2022.

Moore initially placed five banks on the list: BlackRock, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo.

Kentucky enacted a similar law the same year, though the Kentucky treasurer’s office has different banks on its list.

Through a Freedom of Information Act Request, the banks that received the new letters are: BMO Bank, Citibank, Fifth Third, Northern Trust, TD Bank and HSBC.

They have 45 days to prove they are not engaged in a boycott of fossil fuel companies, or they will be added to the list.

A report last year from the Sierra Club showed that four of the five banks originally on the West Virginia Treasurer’s list – Goldman Sachs, Chase, Morgan Stanley and Wells Fargo – are among the top providers of financing to utility companies that burn coal.

Citibank and TD Bank are also among the companies supporting coal-burning utilities.

Three of the banks on the combined list – Chase, Citi and Wells Fargo – are among the top six providers of financing to coal-burning utilities.

The three banks have committed to align their financing with the Paris Agreement and the Net Zero Banking Alliance yet have injected billions of dollars into coal-consuming utilities since 2016.

Banking Concerns And Spring Has Sprung On This West Virginia Morning

On this West Virginia Morning, the last few weeks of news from the world of banking has shaken confidence in financial institutions both at home and abroad. Reporter Chris Schulz set out to find what the real impact has been on West Virginia’s financial institutions.

On this West Virginia Morning, the last few weeks of news from the world of banking has shaken confidence in financial institutions both at home and abroad. Reporter Chris Schulz set out to find what the real impact has been on West Virginia’s financial institutions.

Also, on this show, the Allegheny Front, based in Pittsburgh, shares its latest story about when Spring has actually sprung.

West Virginia Morning is a production of West Virginia Public Broadcasting which is solely responsible for its content.

Support for our news bureaus comes from West Virginia University, Concord University, and Shepherd University.

Listen to West Virginia Morning weekdays at 7:43 a.m. on WVPB Radio or subscribe to the podcast and never miss an episode. #WVMorning

Law Will Allow State To Boycott Banks That Shun Fossil Fuels

The state legislature passed a bill that seeks to punish banks that refuse to finance fossil fuel companies.

SB 262, which takes effect in June, will enable the state treasurer to block West Virginia from doing business with financial institutions that boycott fossil fuels.

The treasurer’s office will compile a list of banks that meet the criteria. The law authorizes the treasurer to refuse to consider such institutions for contracts with the state.

There are loopholes, though. First, the state’s Investment Management Board is exempt. The board manages billions of dollars of state taxpayer funds.

Second, it allows banks to limit their exposure to fossil fuels for reasonable business purposes. That includes managing risk, limiting liability and complying with laws and regulations.

Most financial institutions already do that. Further, many have policies that encourage investment in greener sources of energy or a commitment to achieve a net-zero carbon impact. As in other sectors, climate change has become part of the business model in banking.

It isn’t clear which financial institutions could be affected by West Virginia’s new law.

Kentucky lawmakers enacted a similar law this year.