Overview

• The Treasury Department's letter highlights risks posed by laws restricting banks from considering environmental, social, and governance (ESG) factors.
• Florida's law, signed by Governor Ron DeSantis, prevents banks from using non-financial factors in business decisions.
• Treasury officials argue such laws could aid international criminals and terrorists by creating financial system vulnerabilities.
• The response follows a request from bipartisan lawmakers concerned about national security implications.
• Several other states are considering or have enacted similar laws, raising broader security concerns.