Goldman Sachs policy change may end business with Alaska

Published: Dec. 24, 2019 at 11:40 AM AKST
Email this link
Share on Pinterest
Share on LinkedIn

Alaska’s governor said the state may stop working with Goldman Sachs after the bank announced it would not finance future Arctic oil exploration.

Republican Gov. Mike Dunleavy said he is reconsidering whether Alaska should do business with Goldman, The Anchorage Daily News reported.

“I think it’s part of my role to advocate on behalf of Alaska,” Dunleavy said.

In addition to excluding investment in Arctic drilling, Goldman plans to prohibit financing for coal-fired power plants that do not have equipment to reduce carbon emissions.

The state removed Goldman from the list of five participating banks in the Alaska Tax Credit Certificate Bond Corp. following Goldman’s announcement of its updated environmental policy.

Alaska named Goldman a co-senior underwriter for the corporation in early December. The agency is authorized by the state Legislature to borrow up to $1 billion from public markets to pay tax credits to North Slope oil and gas drillers.

The corporation’s work has been on hold for more than a year after a Juneau man sued to stop the plan. The Alaska Supreme Court is expected to rule on its legality.

“Goldman Sachs has underwritten over $2.4 billion of bonds as part of 26 transactions over the last 10 years” with state agencies and municipalities, Alaska Department of Revenue legislative liaison Genevieve Wojtusik said in a statement.

Goldman also has an arrangement with the Alaska Gasline Development Corp.

The Alaska Permanent Fund Corp. has about $403 million of assets associated with the bank, Permanent Fund Corp. CEO Angela Rodell said.

Dunleavy also raised the possibility of taking action against other companies that take actions similar to Goldman.

Latest News

Latest News