NYCB stock tanks after WSJ report
The WSJ is reporting that New York Community Bancorp (NYCB) is on a desperate quest for equity capital as it battles to regain investor confidence amidst a backdrop of escalating troubles. The once-reliable regional bank is now grappling with a mix of challenges, including real-estate loan losses, and a drastic 70% fall in its stock price since January.
The crisis at NYCB took center stage when it acknowledged problems in its commercial real-estate portfolio earlier this year, resulting in a fourth-quarter loss and a dividend cut. Matters worsened last week as the bank disclosed “material weaknesses” in its loan assessment and monitoring processes, prompting a series of credit downgrades and a new Executive Chairman, Thomas Cangemi.
[…] 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 […]