On Tuesday, Chancellor of the Exchequer David Banks announced his resignation from the leadership of New York City’s massive public school system, just weeks after federal investigators seized his cellphones as part of a sweeping investigation that has rocked Mayor Eric Adams’ administration.
City Hall confirmed the news in a statement, saying Banks’ last day of work would be December 31.
The FBI seized Banks’ personal and work phones on Sept. 4 during a search of the home he shares with his partner, Deputy Mayor Sheena Wright. Authorities also searched the home of Deputy Mayor for Public Safety Phil Banks, who is David’s brother. The investigation reportedly centered on David and Phil’s youngest brother, Terence Banks, a retired MTA supervisor who recently started a government relations agency.
According to the New York Times, federal prosecutors are investigating Terence Banks and his company in connection with a bribery scheme.
All Banks brothers have denied any wrongdoing.
David Banks said in a statement on Tuesday that he had decided to resign without giving any further explanation.
During a press conference on Sept. 13, he said he was cooperating with authorities. “I’ve always lived my life with integrity. Every day of my life,” he said. “Everyone who knows me knows that … so we’re all going to wait and see where these investigations lead.”
Banks also said the investigation was not a distraction and reiterated his love for his family.
“I love my brothers. I love my family. And I’m sure you love your brothers and sisters and your family,” he said. “Nobody wants to see a family member go through something – or have their name in the paper for all sorts of problems.”
His resignation is the latest sign of the chaos currently gripping the Adams administration, amid at least four federal investigations underway. In addition to the Banks investigation, authorities are investigating a nightlife consulting business run by the twin brother of former police commissioner Edward Caban. As part of that investigation, federal agents seized the police commissioner’s phone. Caban resigned earlier this month, calling it a “distraction” for the NYPD.
Separately, federal prosecutors in Manhattan are investigating the influence of foreign money on Adams’ 2021 campaign.
Federal prosecutors in Brooklyn are investigating Winnie Greco, a well-known adviser and fundraiser for Adams.
With Banks’ departure, two of Adams’ most important posts – schools chancellor and police chief – will also have resigned after federal agents seized their phones. And on Monday, the city’s health commissioner, Ashwin Vasan, said he would resign early next year because he wants to spend more time with his family.
“I am immensely grateful and proud of the work that has been accomplished in New York City’s public schools under Chancellor David Banks,” Adams said in a statement Tuesday.
Adams had previously stated that he had chosen Banks as his preferred chancellor years ago, long before he became mayor. Banks’ partner Wright was Adams’ first deputy mayor and Adams’ partner Tracey Collins served under Banks as head of the Department of Education.
But there have been recent signs that Banks and Adams are not on the same page. Banks promised over the summer that he would soon announce a ban on cell phones in all public schools. But at the start of the school year, Adams walked back his announcement, saying more time was needed to work out the details.
Banks’ groundbreaking concept, which is changing the way the city’s children learn to read, is still in its infancy. Half of the city’s elementary schools adopted new curricula last year, and the other half will adopt them in September. Banks called the overhaul “legacy work.”
Many national education leaders have praised the literacy initiative, but experts say it is too early to judge whether the changes are having an impact. Regular assessments have not shown much progress and some parents have criticized the new curricula as rigid and boring.
“Now more than ever, we must focus on doing the work our students, educators and public schools need. Chancellor David Banks is an educator who has sought to improve public education for all students,” Michael Mulgrew, president of the United Federation of Teachers, said in a statement Tuesday. “We thank him for his partnership, passion and collaboration and wish him well.”
Banks also sought a further comprehensive overhaul of mathematics education in the city.
He also had to respond to the rise of anti-Semitism and Islamophobia in schools. While some parents and educators accused his administration of not adequately protecting students and teachers from discrimination and hate speech, many observers praised his appearance before Congress on the issue in May.
“When anti-Semitism rears its head, I think we have to respond, and that’s what we have done,” Banks said, while criticizing some members of Congress for their political theater.
“I want to make a very frank call to Congress to call for action, to bring us together and talk about how we can solve this problem,” he said.
Banks’ administration also clashed with parents and city council members over budget cuts to schools and early education programs.
Before becoming chancellor, he founded and directed the Eagle Academy for Young Men, a network of schools that educate primarily boys of color.
“I grew up in our public schools and have spent most of my adult life serving the students and families of our city, and I am absolutely confident that the work we have begun will continue to thrive and benefit generations to come,” Banks said Tuesday.
This story has been updated with comment from Michael Mulgrew, president of the United Federation of Teachers.
