New York Banking Commission votes to halt deposits at Capital One and Keybank

TL;DR Breakdown

  • New York City’s Banking Commission has frozen deposits into Capital One and KeyBank due to their failure to provide plans detailing efforts against discrimination.
  • Comptroller Brad Lander also voted against designating International Finance Bank, PNC Bank, and Wells Fargo to hold public funds.
  • This move sets a precedent for demanding transparency and fairness from banks, potentially initiating a global shift toward equitable banking.

The New York City Banking Commission has frozen deposits into Capital One and KeyBank, two of the city’s prominent financial institutions. However, the historic decision, sparked by the banks’ failure to submit plans detailing their efforts to combat discrimination, signifies the city’s commitment to demanding transparency and fairness in the financial sector.

Championing equity in the financial sphere

The world’s financial epicenter, New York City, has laid down the gauntlet in its push for equitable banking. This move, spearheaded by City Comptroller Brad Lander in collaboration with Mayor Eric Adams and the Department of Finance, has reiterated that banks seeking to operate within the city limits must demonstrate their commitment to fair practices.

A prerequisite for banks operating within NYC requires the submission of certificates detailing their non-discrimination policies in hiring, promotion, and service delivery. In a recent action, Capital One and KeyBank, holders of substantial city deposits—$7.2 million and $10 million, respectively—failed to meet these requirements, leading to the Commission’s decision to freeze their city deposits. This action, however, won’t affect existing accounts, which will continue servicing payments but won’t accept any new deposits.

Reinforcing social responsibility

Comptroller Brad Lander also voted against designating International Finance Bank, PNC Bank, and Wells Fargo to hold public funds in a bold move to strengthen oversight. This decision echoes his sentiment: “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.”

Echoing these sentiments, Deputy Comptroller for Policy Annie Levers underscored the Commission’s role in ensuring the city only conducts business with banks committed to community reinvestment and fair credit practices. Her comments followed a public hearing that heard testimony from citizens who experienced discrimination in banking processes and predatory lending practices that jeopardized their rights and living conditions.

The decision to freeze deposits and the commitment to higher scrutiny is an isolated act and part of a series of actions to reinforce social responsibility in the banking sector. Twenty-six banks were certified to receive deposits from New York City agencies for the next two years, indicating that those adhering to fair practices can expect to flourish within the city limits.

New York City has sent a clear message that discrimination, in any form, will not be tolerated, especially within the city’s thriving financial sector. This pivotal move is not just a bold statement within NYC but also sets a precedent for cities worldwide to follow, potentially initiating a global shift toward a more equitable banking landscape.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:New York Banking Commission votes to halt deposits at Capital One and Keybank

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年5月28日 03:59
Next 2023年5月28日 08:07

Related articles

  • Five suspects captured in Thailand for $76M crypto investment fraud

    TL;DR Breakdown Five individuals have been arrested in a joint international operation for involvement in a massive cryptocurrency scam. The fraudulent scheme operated under BCH Global Ltd., deceiving at least 3,280 investors into putting money into gold and the cryptocurrency USD Tether. CCIB spokesperson Kissana Phathanacharoen confirmed ongoing communication with victims about their legal rights and options for filing complaints. Description In a significant development, a joint international operation led to the arrest of five individuals suspected of orchestrating a massive cryptocurrency scam. The suspects, four Chinese nationals and one Lao citizen, are now facing multiple charges, including public fraud and money laundering. The operation, spearheaded by Thailand’s Cyber Crime Investigation Bureau (CCIB), involved cooperation from … Read more In a significant development, a joint international operation led to the arrest of five individuals suspected of orchestrating a massive cryptocurrency scam. The suspects, four Chinese nationals and one Lao citizen, are now facing multiple charges, including public fraud and money laundering. The operation, spearheaded by Thailand’s Cyber Crime Investigation Bureau (CCIB), involved cooperation from Homeland Security Investigation and other global…

    Article 2023年9月12日
  • Coinshares report shows that traders still prefer Bitcoin

    TL;DR Breakdown Coinshares has released a new report that shows that institutional traders still prefer Bitcoin. Ethereum purchase ranks up but Bitcoin remains a sovereign choice. Description Institutional investors have demonstrated a strong focus on Bitcoin (BTC) in recent weeks, as the cryptocurrency continues to surge and reach new price highs for the year 2023. According to a report by CoinShares’ Head of Research, James Butterfill, Bitcoin-related products attracted $310.6 million in inflows over the past two weeks, representing the majority of … Read more Institutional investors have demonstrated a strong focus on Bitcoin (BTC) in recent weeks, as the cryptocurrency continues to surge and reach new price highs for the year 2023. According to a report by CoinShares’ Head of Research, James Butterfill, Bitcoin-related products attracted $310.6 million in inflows over the past two weeks, representing the majority of cryptocurrency product inflows. Coinshares report showed that inflows focused on Bitcoin According to Coinshares, these recent inflows mark a notable shift from the previous nine consecutive weeks of outflows, highlighting a renewed interest in Bitcoin among institutional investors. The Coinshares’…

    Article 2023年7月6日
  • Arbitrum price analysis: ARB slips down to $1.16 as bears overtake bulls

    TL;DR Breakdown Arbitrum price analysis shows a downtrend ARB/USD faces resistance at the $1.21 level Support for the coin is seen at $1.14 The Arbitrum price analysis shows a bearish trend as the token has experienced a significant selloff in recent trading sessions. The ARB/USD pair is trading at $1.16, which is a 3.88 percent decrease from the daily high of $1.21. The bears have overtaken the bulls, pushing prices lower in the short term. The market for ARB price opened the day trading in a bullish mood as the price increased to a high of $1.21. However, Arbitrum faced selling pressure at this level and started to drift lower. The bearish sentiment continued throughout the day, pushing the token’s price further down, targeting the $1.14 support level. Arbitrum price analysis 1-day price chart: ARB/USD demotes to $1.16 after a bearish rush The daily Arbitrum price analysis shows a downward trend for the market, as strong selling pressure was observed during the day. The price curve shows a downward slope due to the ongoing bearish wave. Red candlesticks are marking…

    Article 2023年5月19日
  • GameStop withdraws support for crypto wallets amid regulatory uncertainty

    TL;DR Breakdown GameStop will discontinue its crypto wallet services by November 1, 2023, due to U.S. regulatory uncertainty. The decision aligns with the company’s cautious approach to digital assets, avoiding significant risk in the crypto space. This move reflects broader challenges in the U.S. regulatory landscape, including recent lawsuits against crypto companies. Description Leading video game retailer GameStop (GME) announced that it would discontinue support for its crypto wallets, a move that comes in the wake of heightened regulatory scrutiny in the United States. The wallets, which enabled users to manage both cryptocurrencies and non-fungible tokens (NFTs), will be removed from the market on November 1, 2023. The … Read more Leading video game retailer GameStop (GME) announced that it would discontinue support for its crypto wallets, a move that comes in the wake of heightened regulatory scrutiny in the United States. The wallets, which enabled users to manage both cryptocurrencies and non-fungible tokens (NFTs), will be removed from the market on November 1, 2023. The company, which rolled out the wallet service around a year ago, has informed customers…

    Article 2023年8月2日
  • Investors embrace UBS-Credit Suisse deal with enthusiasm

    TL;DR Breakdown The emergency takeover of Credit Suisse by UBS is being positively received by investors. Despite potential job losses and integration challenges, the merger is seen as a strategic opportunity for UBS. UBS expects to attract $150 billion in new client funds annually, becoming a wealth management powerhouse. Description Investors are reacting positively to the emergency takeover of Credit Suisse by Switzerland’s largest bank, UBS. The deal, viewed by many as a promising strategic move, could reposition UBS as a prominent player in the financial landscape, despite concerns of potential job losses and a complex integration process. Promising opportunities amid risks The takeover, completed … Read more Investors are reacting positively to the emergency takeover of Credit Suisse by Switzerland’s largest bank, UBS. The deal, viewed by many as a promising strategic move, could reposition UBS as a prominent player in the financial landscape, despite concerns of potential job losses and a complex integration process. Promising opportunities amid risks The takeover, completed for 3 billion Swiss francs (approximately $3.4 billion), has led to a rising wave of optimism among…

    Article 2023年7月18日
TOP