NYC limits city deposits with banks that refused to submit anti-discrimination plans

by sam

Samuel Case, FISM News

New York City is limiting new deposits with two major banks after they failed to submit anti-discrimination plans. 

Capital One, which held $7.2 million in city deposits at the end of last month and KeyBank, which held $10 million “outright refused” to submit the plans, according to a press release from city comptroller Brand Lander.  

Lander also voted against designating International Finance Bank, PNC Bank, and Wells Fargo to hold city funds for failing “to submit required plans demonstrating their efforts to root out 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,” Lander said. 

“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.”

In February, the NYC Banking Commission announced that designated banks must “demonstrate a meaningful commitment to combat discrimination in employment, services, and lending.”

Deputy Comptroller for Policy Annie Levers claimed New York residents are “concerned that taxpayer dollars are going to banks that provide financing for predatory lending, fossil fuel extraction, and gun manufacturing.” 

She added, “The Banking Commission can and should assume a stronger role in assuring that the city only conducts business with banks who demonstrate their commitment to community reinvestment and fair credit practices.”