New York is a hotbed for the power and influence of Wall Street, which has become the leading player in the City’s financial sector.
The city’s financial services industry has become one of the fastest-growing sectors in the United States, with a record $1.3 trillion in annual revenues.
PNC Financial Services Group, a private equity firm that controls approximately 40% of PNC’s portfolio, was recently suspended by New York’s Financial Services Commission (FSC) for violating the terms of its lease to operate the PFC facility in New York.
The suspension comes after the city announced it was pulling $30 million in loans from the company due to the failure of its infrastructure to meet its needs.
The New York Times reported that PNC has failed to live up to its contractual obligations.
The Times reported: PNC, the nation’s third-largest private equity investor and one of Wall’s most prolific players in the New York financial markets, has long been known for its ability to tap into the pockets of Wall street and the New Yorkers who live in its neighborhoods.
But the company’s actions over the past three years have been far more concerning than any financial crisis.
The company has violated several important rules in its business dealings with New York, including one that requires it to pay up to 50% of its total annual revenue in rent to its tenants, the Times reported.
The newspaper noted that PFC also failed to make payments to its financial advisers for at least a year.
The FSC has also suspended the PPC Group from more than $5 billion in annual funding to a variety of New York business entities.
It was not immediately clear whether the suspensions affected PNC-owned credit unions.
The decision by the FSC to suspend PNC was made in response to a complaint from a group of people who allege that Pnc violated a federal anti-money laundering statute that protects financial institutions from having to pay taxes to the Treasury Department.
PFC has been suspended from a total of four New York state casinos and several hotels and restaurants since September 2017, the FSL said in a statement to CNBC.
The group is requesting a court order to force the company to pay rent for at a fixed rate, which would include at least $100,000 annually, according to the FSB statement.
PPC did not immediately respond to a request for comment.
The PNC group has a history of being criticized for not complying with financial reporting rules.
The Federal Trade Commission (FCA) has charged that PPC violated the financial reporting requirements of the Fair Credit Reporting Act by failing to report the amount of money it paid to its real estate broker, for example.
Last month, a lawsuit filed by the Consumer Financial Protection Bureau alleged that PLC was a money-laundering operation.
In 2016, the Federal Trade Commision fined PNC $150,000 for not reporting the amount it paid a broker to help manage its client accounts.
Earlier this year, the federal government ordered PNC to pay more than a million dollars in fines and penalties.
Read more about the financial services sector: The Associated Press contributed to this report.