NYC Council wants banks to detail efforts in communities
May 15th, 2012
The bill is expected to pass today at the council’s stated meeting. Its supporters, including the Association for Neighborhood and Housing Development, say it will help policymakers make better decisions about where the city’s money is deposited and encourage banks to invest in communities.
“This bill will make the banking capital of the world the responsible banking capital of the world,” Council Speaker Christine Quinn said during the meeting.
Other cities are considering or have passed similar ordinances after a punishing financial crisis. Los Angeles was expected to pass its own today.
Mayor Michael Bloomberg told The New York Times he was wary of putting restrictions on where city money could be deposited. “You would think, between the federal government and the state government, we’d have enough bank regulations,” Bloomberg told the newspaper.
The city currently banks with over 30 major financial institutions, including JPMorganChase, Bank of America, New York Community Bank and Citibank.
At a council hearing in March 2011, the city Department of Finance said it was opposed to the bill, saying it was overly broad and could mislead consumers and businesses into believing it regulates banks.
“When procuring banking services, the city focuses and should continue to focus solely on the financial safety and soundness of each bank, its banking capabilities and its pricing,” said Elaine A. Kloss, in testimony before the committees on finance and community development.
The Department of Finance oversees the city’s money, in conjunction with the city comptroller and the Banking Commission. The commission approves or denies applications from financial institutions seeking to do business with the city.By Cristian Salazar on May 15, 2012, 12:08 pm
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