The New York City Banking Commission has voted to freeze deposits at Capital One and KeyBank after the two institutions failed to submit anti-discrimination plans.
“Banks seeking to do business with New York City must demonstrate that they will be stewards of public funds and responsible actors,” City Comptroller Brad Lander said in a statement.
In a statement Thursday, the commission said it voted to limit deposits at the two banks because they “did not submit the necessary plans to demonstrate their efforts to eliminate discrimination.” At a public hearing Thursday, the commission heard from New Yorkers who have been discriminated against by these banking institutions.
“The views we heard today from New Yorkers who have experienced discrimination in the process of opening or closing accounts and front-line bankers who have experienced illegal and abusive practices should give us all pause,” Deputy Comptroller for Policy Annie Lever said in a statement. .
“We’ve heard from many residents the concern that taxpayer dollars are going to banks that support predatory lending, oil extraction and equipment manufacturing, and the idea of a public bank. Instead, put those dollars to work for our community.” Levers added.
The commission also voted not to designate International Finance Bank, PNC Bank and Wells Fargo as holders of public funds. Lander said in a statement that these banks have not taken meaningful steps to combat discrimination in their jobs and are not stewards of public dollars.
The Hill has reached out to Capital One for comment.
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