Mnuchin & Liberty Strategic Capital come to the rescue of NYCB

The news on NYCB just keeps coming today, and it appears as if it’s fundraising round was successful. The cash-strapped bank has just issued a press release and it appears Steve Mnuchin and a consortium consisting of Liberty Strategic Capital, Hudson Bay Capital and Reverence Capital Partners has come to the rescue with a $1bil cash infusion.

Some terms of the deal include:

• Reduction of the board size to 9-members (from 15 according to its website)
• Addition of Mnuchin and Joseph Otting to the board
• Otting will become CEO (replacing Alessandro DiNello who was installed last week)

Shares have rebounded and are now up ~5% on the day, which has to help offset some of Jenny Harrington’s losses on the stock.