Posted on 03/02/2024 3:48:46 PM PST by george76
New York Community Bancorp sent its shares plummeting 26% on Friday after the regional lender said has discovered “material weaknesses” in the ways it tracks loan risks and that its CEO is leaving.
The New York-based firm announced late Thursday that CEO Thomas Cangemi would be leaving NYCB — capping off a 27-year tenure at NYCB — and that Alessandro DiNello would take his place, effective immediately.
DiNello, NYCB’s executive chairman, had been acting as the bank’s true boss since earlier this month
...
One NYCB director, Hanif “Wally” Dahya, said in a Feb. 25 letter that he “did not support the proposed appointment” of DiNello as CEO without saying why, accor...
Dahya, who had been presiding director, also resigned from the board on Thursday.
...
Separately on Thursday, the bank — among the top 30 in the US — amended its fourth-quarter losses from $252 million to $2.7 billion and divulged “internal control issues.”
“As part of management’s assessment of the Company’s internal controls, management identified material weaknesses in the Company’s internal controls related to internal loan review, resulting from ineffective oversight, risk assessment, and monitoring activities,” the company said in a filing with the Securities and Exchange Commission.
...
The announcement reignited concerns about the commercial real estate market which, in New York City, has been struggling over the so-called “urban doom loop” caused by an influx of working from home during the pandemic — a trend that has stuck despite return-to-office mandates.
There have also been worries about the status of regional banks after three high-profile lenders suddenly collapsed last year: Silicon Valley Bank, Signature Bank, and First Republic Bank.
Shares of NYCB closed at $3.55, its lowest level since 1997. The stock is down 65% year to date.
(Excerpt) Read more at nypost.com ...
“amended its fourth-quarter losses from $252 million to $2.7 billion “
Just a rounding error.
whoopsie
I love hearing about the “urban doom loop.”
May liberal hellholes rot away into nothingness. COVID was able to bring an excellent insurmountable problem to runaway city government spending.
The U.S. national debt is rising by $1 trillion about every 100 days..
https://freerepublic.com/focus/f-news/4221193/posts
LOL, imagine attempting to clarify that...
Defenestration comes later.
What do people expect from a bank with a Communist name?
Commie whore Letitia James is proud.
I think the Fed has been covering up the weaknesses in regional banks. After the failure of the couple of banks last spring, the government and media declared the banking system sound and little more has been said.
I look for more banks to soon fail and/or be bought up by one of the Big Four. Soon, we will have fewer banking options. Also, eventually banks will come after the credit unions making them a less viable option.
if bad loan risks sink your bank...thank a democrat.
When your loans are bringing in 3% and your cost of borrowing new capital is 6%, you’re a zombie bank.
Just like all the other banks.
How much money did the CEO make while at the helm of its destruction?
https://www.concoda.com/
Interesting analysis here
BTFP will expire 3/11/24 which some claim nationalized banks. It ends 3/12/24. What’s next?
https://www.concoda.com/p/the-feds-new-rescue-mechanism?utm_source=%2Fsearch%2FThe%2520Feds%2520new%2520rescue%2520mechanism&utm_medium=reader2
THE ‘GET TRUMP” EFFECT ALREADY?????
For much of this century returns on cash was like less than 0.5% per year. This was a war on savers.
So getting like a 5% return on cash is pretty good.
NYCB acquired the collapsed Signature Bank.
-2- the Bank Term Funding Program expires next week. The emergency loan program established for regional banks last year during the crisis.
What is next for regional banks? = Bank Crisis II .
I guess nine federal agencies and state banking regulators still aren’t enough to oversee the banks?-said no rational human being ever.
As long as the loan request asset values weren’t inflated, default is okeedokee.
at a million dollars every 100 days, the end was tomorrow.
imagine being $200,000,000,000,000 debt/unfunded liabilities, borrowing at 4% and the US Dollar being the unparalleled king of earth with no reasonable substitute even existing.
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