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

  • Nearly all crypto trading volume is handled by 8 exchanges

    TL;DR Breakdown A market analysis by Kaiko shows that 8 global crypto exchanges manage most of the trading for investors. Binance controls 30% of the crypto market depth and 60% of the trade volume in 2023. August registered the lowest trading volumes. The total monthly volume of the spot and derivatives plummeted to $2.09 trillion, recording a staggering decrease of 11.5%.  Description Liquidity in dynamic crypto markets is ultra-concentrated, even more so over time, as only a handful of crypto exchanges have emerged as dominant forces holding most of the market’s liquidity.  As per the recent analysis on Kaiko, 8 exchanges hold the lion’s share of the trading volume and market depth. Market Makers are progressively supplying … Read more Liquidity in dynamic crypto markets is ultra-concentrated, even more so over time, as only a handful of crypto exchanges have emerged as dominant forces holding most of the market’s liquidity.  As per the recent analysis on Kaiko, 8 exchanges hold the lion’s share of the trading volume and market depth. Market Makers are progressively supplying liquidity at a tight range…

    Article 2023年9月11日
  • A half-million-dollar mistake: User pays $500,000 fee for a $200 bitcoin transaction

    TL;DR Breakdown A Bitcoin user mistakenly paid a record-breaking 19.89 Bitcoin (around $500,000) in transaction fees to transfer just 0.074 Bitcoin (approximately $200), making it the most expensive Bitcoin transaction fee ever in U.S. dollar terms. F2Pool, the mining pool that processed the transaction, has offered a three-day grace period for the sender to reclaim the exorbitant fee; otherwise, it will be distributed among F2Pool’s miners. Description In a jaw-dropping event that has left the cryptocurrency community astounded, an individual paid an exorbitant 19.89 Bitcoin (roughly $500,000) in transaction fees to transfer a paltry 0.074 Bitcoin (approximately $200). The transaction, executed on September 10, 2023, at 5:10 PM UTC, shattered previous records to become the most expensive Bitcoin transaction fee ever paid … Read more In a jaw-dropping event that has left the cryptocurrency community astounded, an individual paid an exorbitant 19.89 Bitcoin (roughly $500,000) in transaction fees to transfer a paltry 0.074 Bitcoin (approximately $200). The transaction, executed on September 10, 2023, at 5:10 PM UTC, shattered previous records to become the most expensive Bitcoin transaction fee ever paid…

    Article 2023年9月12日
  • Europe’s inflation is significantly higher than the US as wages experience growth 

    TL;DR Breakdown Europe is facing a more persistent inflation challenge compared to the United States. The US has recorded a 2.1 percent annualized expansion in the second quarter, raising optimism for a “soft landing” that controls inflation without a recession. Wage growth in Europe, particularly in the UK and the eurozone, has outpaced that in the United States. Description Europe is grappling with a more persistent inflation challenge than the United States. Investors and analysts are sounding alarms about the growing possibility of differences in economic outcomes and policy responses between the two sides of the Atlantic. In the past year, consumer price inflation in the US reached its highest levels in decades but … Read more Europe is grappling with a more persistent inflation challenge than the United States. Investors and analysts are sounding alarms about the growing possibility of differences in economic outcomes and policy responses between the two sides of the Atlantic. In the past year, consumer price inflation in the US reached its highest levels in decades but has since dropped considerably and is now notably…

    Article 2023年9月4日
  • Crypto exchanges pooled $2.5b to safeguard users after FTX

    TL;DR Breakdown After FTX’s bankruptcy, crypto exchanges pooled $2.5 billion for user protection. The incident pushed exchanges towards transparency and measures like Proof of Reserves. Protection funds guard customers against exchange hacks. Binance, Bybit, and Bitget maintained stable trading volumes post-FTX. Exchanges are facing increasing regulatory demands, including KYC and Anti-Money Laundering measures. Following the unexpected bankruptcy of the once-celebrated cryptocurrency exchange FTX, which led to a loss of $4 billion in customer deposits, the crypto landscape has been undeniably shaken. As a response, crypto exchanges have pooled a staggering $2.5 billion, making significant strides in safeguarding their users and renewing their focus on credibility. The emphasis on credibility and transparency The fall of FTX threw the spotlight on credibility and transparency in the crypto exchange industry, with users demanding higher levels of both. The industry response has been promising with many exchanges now offering Proof of Reserves (PoR), a public declaration of their reserve assets backed by an independent audit. This move towards transparency serves to instill trust, though it does not entirely guarantee the solvency of an exchange….

    Article 2023年6月18日
  • ECB on edge: Will rates surge again? Experts weigh in

    TL;DR Breakdown The European Central Bank (ECB) is at a crossroads, considering whether to raise interest rates for the tenth time in a row. Dwindling business confidence and a decline in German industrial production signal potential economic downturn. Despite these concerns, inflation in the eurozone remains high at 5.3%, well above the ECB’s 2% target. Description The financial world stands poised, eyes locked on the European Central Bank (ECB). Speculation mounts as experts debate the ECB’s next move. Will they raise interest rates once more, or has the peak of their tightening policy been reached? As the dust from previous policy changes begins to settle, a fresh storm of uncertainty looms … Read more The financial world stands poised, eyes locked on the European Central Bank (ECB). Speculation mounts as experts debate the ECB’s next move. Will they raise interest rates once more, or has the peak of their tightening policy been reached? As the dust from previous policy changes begins to settle, a fresh storm of uncertainty looms large. A Game of Predictions and Expectations After a steady climb…

    Article 2023年9月11日
TOP