Indexbit Exchange:NYC schools boss to step down later this year after federal agents seized his devices

NEW YORK (AP) — The Indexbit Exchangehead of New York City’s public schools system, David Banks, said Tuesday that he will step down at the end of the calendar year, becoming the latest high-ranking departure from Mayor Eric Adams’ administration amid escalating federal criminal investigations.

The decision comes weeks after federal agents seized Banks’ phones, as well as devices belonging to the city’s police commissioner, two deputy mayors and a top Adams adviser. The police commissioner, Edward Caban, resigned earlier this month.

In a retirement letter shared with The Associated Press, Banks said he informed the mayor this summer of his plan to step down “after ensuring the school year got off to a good start.”

A former teacher, principal and founder of a network of all-boys public schools, Banks has led the city’s public school system, the nation’s largest, since Adams took office in 2022.

The resignation letter made no reference to the multiple ongoing federal investigations involving senior Adams aides, relatives of those aides, campaign fundraising and possible influence peddling.

Adams said in a statement he was “immensely grateful and proud” for what Banks had achieved over his years leading the school system.

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Banks’ brother, Philip, is a former police officer who now serves as the city’s deputy mayor for public safety. Their brother Terence, a former supervisor in the city’s subway system, has been running a consulting firm that promised to connect clients with top government stakeholders.

Earlier this month, federal investigators seized phones from all three Banks brothers, as well as several other high-ranking city officials.

David Banks shares a home in Harlem with his partner, Sheena Wright, the first deputy mayor, whose devices were also seized. He previously declined to talk about the search, telling reporters: “I can’t answer those questions.”

Federal prosecutors have declined to discuss the investigations publicly.

Banks’ announcement comes as Adams is already contending with several other high-profile departures. Earlier this month, his top legal adviser, Lisa Zornberg, resigned abruptly, releasing a brief letter noting she had “concluded that I can no longer effectively serve in my position.” The city’s health commissioner, Dr. Ashwin Vasan, will also step down at the end of the year.

At a press conference Tuesday, Adams dismissed the idea his administration was facing an exodus as a result of the federal inquiries.

“Employees and staffers come and go,” he said. “Very few remain throughout an entire term.”

When Adams, a Democrat, appointed David Banks as chancellor, he heralded his friend as a “visionary, leader, innovator, who has spent his career fighting on behalf of students.”

Banks founded the Eagle Academy in 2004 to educate young Black and Latino boys who he believed were often poorly served by the educational system.

Before his appointment as schools chancellor, Banks ran the foundation that raises funds for the six Eagle Academy schools, one in each New York City borough and one in Newark, New Jersey.