New York City’s Banking Commission on Thursday punished banking giants Capital One and KeyBank for not filing anti-discrimination plans with the city.
New York City Comptroller Brad Lander issued a release headlined that the commission voted to “freeze NYC’s deposits” at the two banks.
“The headline is a wobbly one, given the recent banking system chaos. But, the detail is oh-so NY,” Eamonn Sheridan commented on Forexlive.
The freeze has nothing to do with the soundness of the banks, but their compliance with a New York City edict that anti-discrimination plans must be filed. The commission’s action means no more city money will go into Capital One and KeyBank.
Three other banks that wanted to be designated as banks that could hold the city’s cash — International Finance Bank, PNC Bank, and Wells Fargo — were rejected for the sa …