NYC Comptroller: Banking Regulator Gave Financial Firms Free Pass For Roles In F'closure Crisis, Blowing Chance To Squeeze Them Over Improper Conduct

From the Office of New York City Comptroller John C. Liu:

• City Comptroller John C. Liu stated the following in response to questions about today’s New York City Banking Commission vote to designate 35 financial institutions as depository banks:
  
  “Today the New York City Banking Commission rubber-stamped a motion to assign these banks the privilege to serve as depositories without first considering what, if any, role they are playing in the current foreclosure crisis.
  
  This obscure but powerful commission had the opportunity to engage financial institutions in a dialogue on how keep New Yorkers in their homes and they blew it by giving these banks a free pass.
  
  “Most New Yorkers have never heard of the Banking Commission, which is controlled by City Hall and has been given broad authority to regulate financial institutions holding City deposits.
  
  As a result of today’s development, my office will be working with the City Council to enact legislation aimed at holding banks designated as depositories accountable to New York City homeowners and taxpayers. In addition, my staff will be analyzing ways to restructure the Commission in order to better serve New Yorkers.”

For the rest of the NYC Comptroller press release, see Liu: NYC Banking Commission Misses Opportunity To Help New Yorkers Facing Foreclosure (Rubber-Stamps Approvals for Depositories, Liu to Explore Legislation and Other Means to Spur Change at Mayoral-Controlled Commission).