Regional banks including Capital One Financial Corp. (NYSE: COF) and KeyCorp (NYSE: KEY) suffered a setback on Friday after the New York City Banking Commission voted to halt deposits into the city’s bank accounts at the above two banks.
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The New York City Banking Commission took this decision after these two banks failed to submit plans indicating ways to root out discrimination. The Banking Commission stated that while the existing accounts will be used for making payments, no additional deposits will be made in this account, and no new accounts will be opened at these banks.
Capital One commented in response to this decision, “Capital One prohibits discrimination and harassment against any applicant, intern, Associate, vendor, contractor, customer, or client on the basis of protected characteristics.”
Analysts are cautiously optimistic about COF stock with a Moderate Buy consensus rating based on seven Buys, four Holds, and two Sells.
