New York City Banking Commission votes to halt city deposits at Capital One.
The New York City Banking Commission has voted to end city deposits at Capital One and KeyBank due to the two institutions not submitting plans for how to prevent discrimination.
“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,” City Comptroller Brad Lander said in a statement.
In a statement Thursday, the commission said that it voted to limit the deposits at the two banks because they “failed to submit required plans demonstrating their efforts to root out discrimination.” In a public hearing held Thursday, the commission heard from New Yorkers who experienced discrimination from these banking institutions.
“The perspectives we heard today from New Yorkers who experienced discrimination in the process of opening or closing accounts, and frontline bank staff who faced illegal and abusive practices, should give all of us pause,” Deputy Comptroller for Policy Annie Levers said in a statement. For More Information….
“We heard from many residents concerned that taxpayer dollars are going to banks that provide financing for predatory lending, fossil fuel extraction, and gun manufacturing and support for the idea of a public bank that would instead put those dollars to work for our communities,” Levers added.
The commission also voted to not designate International Finance Bank, PNC Bank, and Wells Fargo to hold public funds. Lander said in a statement that that these banks have not taken “meaningful actions to combat discrimination in their operations and are not responsible stewards of public dollars.”