Coalition Sounds Alarm on Citibank's NYC Contract After Bank Approves Federal Seizure of $80M, Calls for Public Bank to Safeguard City Funds
For Immediate Release: February 13, 2025
Contact: Andy Morrison, andy@neweconomynyc.org
February 13, 2025 – The Public Bank NYC coalition issued the following statement in response to the Trump administration’s seizure of $80 million from a New York City account at Citibank—apparently without notice or authorization from the city:
The federal government’s unilateral seizure of city funds raises serious concerns about the legality of its actions, as well as Citibank’s justification for approving the transfer. This brazen act is yet another reminder that relying on private banks puts public money at risk.
Given Citibank’s role in this unprecedented action, the city must urgently reassess the bank’s designation as a municipal depository and take all necessary steps to ensure that public funds are protected from similar future threats.
Our coalition has long advocated for a public bank to hold public deposits and reinvest in local economic development—as a proactive solution to persistent racial and economic inequality. A public bank would give New York City greater control over its funds, protecting them from federal overreach and ensuring they serve the public good.
We urge city officials to work with the state legislature to pass home rule legislation and, locally, to take concrete steps toward establishing a public bank for New York City. We also call on all mayoral candidates to commit to working to establish a public bank, if elected, to ensure the city’s money is safeguarded and works in the public interest.