Sunday, September 14, 2025

NYC Halts Deposits at Capital One, KeyBank

The New York City Banking Commission on Thursday voted to approve 26 depository banks for two years, and to limit new deposits at Capital One (NYSE: COF) and KeyBank (NYSE: KEY). The vote came after the first-ever public hearing held by the Commission, at which community groups and advocates raised concerns about discrimination and predatory lending practices by the two banks.

“This is a victory for New Yorkers who have been fighting for more accountability from their banks,” said New York City Comptroller Brad Lander, one of three members of the Commission. “The Commission’s decision to limit new deposits at Capital One and KeyBank sends a clear message that we will not tolerate discrimination or predatory lending in our city.”

The Commission’s decision is based on the banks’ failure to submit required plans demonstrating their efforts to root out discrimination. Capital One and KeyBank were also found to have engaged in predatory lending practices, such as charging excessive fees and interest rates to low-income borrowers.

Capital One, which at the end of April held $7.2 million in City deposits across 108 accounts, and KeyBank, which had $10 million in City deposits across three accounts, “outright refused to submit required policies,” according to a statement from the comptroller’s office. 

The city will freeze new deposits into these accounts for up to two years. Lander also voted against designating three banks that do not currently hold any city deposits, International Finance Bank, PNC Bank, and Wells Fargo.

“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,” said Lander.

“Unfortunately, despite several opportunities to do so, five banks failed to comply with the New York City Banking Commission’s designation process – leaving us to conclude that they are not taking meaningful actions to combat discrimination in their operations and are not responsible stewards of public dollars.”


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Soma Gold Q2 Earnings: Production Drops Amid Growth Effort

Guanajuato Q2 Earnings: Things Are Going Backwards

Electric Metals: The Sole US Domestic Source Of A Critical Mineral?

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

NYC Subway Threatens Layoffs and Service Cuts if $12 Billion Federal Bailout Not Approved

As the mass exodus out of metro downtown areas across the US continues, New Yorkers...

Thursday, November 19, 2020, 10:06:55 AM

New York City Unveils Plan to Convert Vacant Offices into Housing Units

New York City has unveiled an ambitious plan to address both the surplus of vacant...

Sunday, August 20, 2023, 09:08:00 AM

New York City To Pay Black Lives Matter Demonstrators At Least $21,500 Each After Unlawful Arrest Tactics

New York City has agreed to the proposed settlement for the class action suit filed...

Saturday, March 4, 2023, 11:28:00 AM

Mayor Adams Brings Back Robot Dog to the NYPD, Unveils Two Other High-Tech Devices

New York City officials announced new high-tech additions to the New York Police Department’s (NYPD)...

Thursday, April 13, 2023, 02:14:00 PM

Is There A Market For Restaurant Reservations? Side Hustle Generates Upwards Of $80,000 A Year For Some

In the bustling culinary scene of New York City, securing a reservation at a top-tier...

Wednesday, April 24, 2024, 10:57:00 AM