New York City Banking Commission Votes to Freeze NYC’s Deposits at Capital One and KeyBank

New York City Comptroller ^ | 5/25/23 | Brad Lander

[C210N]

NYC Comptroller joined NYC Mayor and Department of Finance in freezing 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 freeze 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.

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[C210N]

We are literally watching in real-time the take-down of the Petro-world-currency-dollar.

[C210N]

No worries, it is a controlled demolition.

[blackdog]

Banks can’t be Budweiser and have a fiduciary responsibility at the same time? Otherwise they will become a Target, and have to Dodge public outrage.

[R_Kangel]

.... This will be a good test of the ESG Governance System in the Banking Industry. If they wish to exist they will be required to comply.

..... To quote Locutus: ....."Resistance is Futile" .....

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[Shady]

That’s funny beacuse all of the pandemic and UI payments are made through....wait for it, KEY BANK!!!

[Skywise]

So what have they ordered here? That the banks can’t receive deposits of money from ANYONE or that NYC won’t deposit money there itself?

[Lockbox]

Well there is a Federal Bank Charter and a State Bank Charter, but where does a City come into this? Glad banks told city to take a hike!

[RetiredTexasVet]

Pretty soon they will be using Fred’s Discount Bank and Money Laundering when they disqualify all the banks. Luckily, Fred is Adams close relative.

[Mouton]

Ok you wa t the funds frozen so be it. 30 days, no in no out.

[hanamizu]

NYC won’t deposit money there itself?

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Not a banister but it would have to be the latter. However, a city like NYC has a huge amount of cash that is going to be banked. Banks, of course, make money on deposits and they certainly don’t want to be deprived of those deposits.

So governments can extend pressure on banks to behave ways the government involved prefers. The bank can decide if the cost of conforming is worth the benefits of the deposits.

[Skywise]

That’s at least quasi legal.

[Libloather]

NYC - being held hostage?