NYC says the banks failed to submit plans to root out discrimination
NYC says the banks failed to submit plans to root out discrimination.
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— unusual_whales (@unusual_whales) May 25, 2023
Either NYC will retract and correct this issue/ firing person(s) overreach of government or real money will squeeze the city out of its current issues. They’ll hit NYC municipal bonds.
via comptroller.nyc.gov:
NYC Comptroller joined NYC Mayor and Department of Finance in limiting City of New York deposits at the two banks. The Comptroller also voted against designating three others that failed to submit required anti-discrimination plans
Twenty-six banks were designated after first-ever Banking Commission public hearing, new procedures for certifying banks’ practices for non-discrimination, and stronger scrutiny for soundness in light of recent bank failures
New York, NY – Following the first-ever public hearing held by the New York City Banking Commission today, all three members voted to limit deposits at Capital One and KeyBank after the banks failed to submit required plans demonstrating their efforts to root out discrimination. New York City Comptroller Brad Lander, one of three members of the Commission, also voted against designating three other banks to hold public funds: International Finance Bank, PNC Bank, and Wells Fargo.
“Banks seeking to do business with New York City must demonstrate that they will be responsible managers of public funds and responsible actors in our communities,” said Comptroller Brad Lander. “Unfortunately, despite several opportunities to do so, five banks failed to comply with the New York City Banking Commission’s designation process – leaving us to conclude that they are not taking meaningful actions to combat discrimination in their operations and are not responsible stewards of public dollars. I’m grateful to the Mayor, Finance Commissioner Niblack, Treasurer Jackman, Banking Commission Member Jenerette, and our partners at the Department of Finance for working with us to strengthen oversight over the banks that profit from public funds.”
AC