The Trump Administration, throwing its full weight behind Texas Attorney General Ken Paxton, has taken up arms in a legal battle against three of the financial industry's most towering entities—BlackRock, State Street, and Vanguard. The Department of Justice and the Federal Trade Commission have lent their considerable influence to allegations that these asset managers colluded to tamper with the free market, particularly aiming to disrupt the coal industry and push a "green energy" agenda, as per the Texas Attorney General's Office.
In a statement obtained by the Texas Attorney General's Office, AG Paxton expressed his gratitude towards the administration, saying, "I am grateful that the Trump Administration has joined my effort to hold major asset managers accountable for weaponizing the financial industry to illegally control the energy markets and force a destructive ‘green energy’ ideology on the American people." The legal action leveled by Paxton alleges that a joint conspiracy sought to undermine America's energy independence at the expense of both consumers and national sovereignty.
The roots of the conflict stretch back to November 2024, when Paxton sued the investment giants, claiming they used their combined influence to mount pressure on coal companies. The aim, as asserted by the lawsuit, was to maneuver these entities into slashing coal output by half come 2030. Such a strategic move, according to Paxton, artificially shrunk supply, jacked up prices, and paved the way for the asset managers to see their revenues swell—all whilst everyday Americans faced the brunt with heightened electricity costs.
President Donald Trump and Paxton are now joining forces to bring these corporations to book, intending to dismantle what they term as an unlawful stranglehold on a critical segment of the energy sector.
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