NYC Votes to Freeze Deposits at Capital One and KeyBank Over Discrimination Plan Failures

Breaking news: The New York City Banking Commission on Thursday voted to freeze City of New York deposits at Capital One and KeyBank, stating that the banks failed to submit required anti-discrimination plans. This drastic measure comes after repeated requests for the lenders to comply with City regulations aimed at promoting fairness and equality in banking practices.

According to the Comptroller's office, Capital One and KeyBank (which held $10 million in City deposits at the end of April) outright refused to submit required anti-discrimination plans. This refusal has triggered significant consequences, impacting the banks' relationship with the City of New York.

New York City Banking Commission Halts Deposits

The New York City Banking Commission voted to halt deposits into the city's bank accounts at Capital One and KeyBank after the lenders failed to submit plans on how they would ensure fair lending practices and prevent discriminatory lending within the five boroughs. The Commission's decision underscores the City's commitment to holding financial institutions accountable for upholding anti-discrimination standards.

This freeze on deposits sends a strong message that New York City will not tolerate non-compliance with its regulations aimed at fostering a more equitable financial landscape. The future of the City's relationship with Capital One and KeyBank remains uncertain pending the submission and approval of the required anti-discrimination plans.