Anti-Woke Lawsuit could Unintentionally Threaten Trump's Coal Revival Agenda
AUSTIN, Texas (Texas Insider Report) — If Attorney General Ken Paxton truly believes one of the largest investment and money managing firms in the world is leading a grand scheme to cripple the coal market, drive prices up, and bleed Texans dry by forcing them to pay higher utility bills, he sure isn’t acting like it.
According to Attorney General Paxton, Vanguard – one of the largest investment and money managing firms in the world – is part of an enormous "investment cartel" that is guilty of manipulating energy markets and increasing prices charged to consumers.
A lawsuit filed last year by Paxton and 10 other states alleges that Vanguard – along with the additional investment firms of BlackRock and State Street – illegally conspired to artificially constrict the market for coal through anti-competitive trade practices.At the beginning of August, a Federal District Court Judge denied the asset managers’ motion to dismiss the case, permitting the litigation to move forward under Texas and federal antitrust statutes – as well as Texas' Consumer Protection Laws.
In a press release, Paxton – who is running to unseat Texas Senator John Cornyn – took a victory lap for the court’s decision, calling it a “major win” to hold the firms accountable for creating a “investment cartel” to “squeeze more money out of hardworking Americans.”
However, what Paxton did not include in his statement is that he directly benefits from Vanguard’s alleged squeeze on Americans’ pocketbooks.
Vanguard is, after all, in the business of maximizing returns for its clients similar to any other major investment firm – and it also is the case that Mr. Paxton happens to hold millions of dollars in Vanguard Mutual Fund in his investment protfolio, the Senate-hopeful’s recent financial disclosure forms show.
If Paxton claims that Vanguard’s actions have driven up energy prices and hurt consumers, it is likely those actions have boosted the firm’s profits and share prices.
Vanguard is, after all, in the business of maximizing returns for its clients similar to any other major investment firm – and it also is the case that Mr. Paxton happens to hold millions of dollars in Vanguard Mutual Fund in his investment protfolio, the Senate-hopeful’s recent financial disclosure forms show.
If Paxton claims that Vanguard’s actions have driven up energy prices and hurt consumers, it is likely those actions have boosted the firm’s profits and share prices.
If Paxton truly believes Vanguard is leading a grand scheme to cripple the coal market and bleed Texans dry, he sure isn’t acting like it. (Or maybe the returns are too good to give up. Mr. Paxton has been plagued for years by similar such missteps.)
The attorney general reported holding 1,000s of shares in six Vanguard Mutual Funds valued between $1.6 and $6.25 million in his June 16th Financial Disclosure.
The exact value of his Vanguard investments is difficult to calculate, as the amounts are reported in wide range groupings, but the holdings are a mix of passively managed index funds, as well as actively managed portfolios the Daily Caller recently reported.
In a 2024 financial statement field with the Texas Ethics Commission, Paxton reported holding between 3,100 and 12,495 shares across five Vanguard Mutual Funds.
The exact value of his Vanguard investments is difficult to calculate, as the amounts are reported in wide range groupings, but the holdings are a mix of passively managed index funds, as well as actively managed portfolios the Daily Caller recently reported.
In a 2024 financial statement field with the Texas Ethics Commission, Paxton reported holding between 3,100 and 12,495 shares across five Vanguard Mutual Funds.
Cornyn supporters derided Paxton’s investment holdings in the firm’s funds.
“The fact that Paxton profits off the very practices he condemns shows he’s more interested in personal gain over principled leadership,” Aaron Whitehead told the Daily Caller. Whitehead is executive director of pro-Cornyn super PAC, Texans for a Conservative Majority,
The lawsuit’s contradictions do not end there.
The lawsuit’s contradictions do not end there.
While the Attorney General, as well as the DOJ and FTC, which have backed the lawsuit, claim to be protecting coal and fighting for American energy independence, experts have noted the litigation could unintentionally hamstring President Trump’s plans to revive the energy and coal industries.“If found at fault, these companies – who have been previously accused of boycotting the fossil fuel industry – would be required to divest their holdings in the companies listed in the lawsuit,” wrote Pinar Çebi Wilber (right,) Chief Economist & Executive Vice President of the American Council for Capital Formation, for Fox News
She called the outcome “a result that many green groups could only dream about a year or so ago.”
The full divestment and exodus of capital would result in the coal industry losing nearly $18 billion, which would be an enormous blow to energy reliability, and an industry that desperately needs more investment, not less.
She called the outcome “a result that many green groups could only dream about a year or so ago.”
The full divestment and exodus of capital would result in the coal industry losing nearly $18 billion, which would be an enormous blow to energy reliability, and an industry that desperately needs more investment, not less.
Ken Paxton’s crusade against BlackRock, State Street and Vanguard raises questions, especially in the backdrop of what is expected to be a hotly contested Senate race.
It is hard to rationalize Paxton’s assertion that he is protecting coal and Americans – while his financial portfolio thrives under that which he seemingly condemns – when the consequences of the litigation could be a death knell for the industry at large.
