As Thousands of Taxi Drivers Were Trapped in Loans, Top Officials Counted the Money


The division superintendent at the time, Benjamin M. Lawsky, a former aide to Gov. Andrew M. Cuomo, mentioned he didn’t, as a rule, focus on his tenure at the division.

In an emailed assertion, the division denied it struggled after the merger and mentioned it took motion to cease the collapse of the medallion market. A division spokesman supplied a protracted checklist of warnings, options and pointers that it mentioned examiners had issued to lenders. He mentioned that beginning in 2012, the division downgraded some of its personal inner rankings of the lenders.

The checklist didn’t embrace any situations of the division formally penalizing a medallion lender, or making any public assertion about the trade earlier than it collapsed.

Between 2010 and 2014, as officers at each stage of authorities did not rein in the dangerous lending practices, information present that roughly 1,500 individuals purchased taxi medallions. Over all, together with refinancings of outdated loans and extensions required by banks, medallion house owners signed at the very least 10,000 loans in that point.

Several regulators who tried to boost alarms mentioned they believed the authorities stood apart as a result of of the trade’s connections.

Many pointed to at least one firm — Medallion Financial, run by the Murstein household. Former Gov. Mario M. Cuomo, the present governor’s father, was a paid member of its board from 1996 till he died in 2015.

Others famous that Mr. de Blasio has lengthy been near the trade. When he ran for mayor in 2013, an trade lobbyist, Michael Woloz, was a high fund-raiser, information present. And Evgeny Freidman, a serious fleet proprietor who has admitted to artificially inflating medallion costs, has mentioned he’s near the mayor.



Source link Nytimes.com

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