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 ...
It’s my understanding they hold a ton of CRE.
of what, an order of magnitude??? 8^)
Not to mention the exodus of investors fleeing the organized crime foundation of the state.
It is even worse.
Despite abt 1/4 never returning to an office-
the office building projects are done years in advance.
Many of these cities have cranes building office space while an obvious glut already exists.
I’ve seen the future=tax hikes, spending freezes and inflation.
I guess the fortune cookie about interesting times was correct.
accidently omitted it also includes vulture capitalists buying some of this stuff for pennies on a dollar.
I’m sure you saw that Cardone pulled out of NY=noteworthy but not nearly as much as his interest in going into NY. He’s a successful, knowledgeable RE guy that must’ve thought some bargains could be brought to the table.
Wow🤦♂️🤦♂️🤦♂️🤦♂️
There was an article here about him after the Trump case.
What do make of the below?
https://www.fxstreet.com/analysis/fed-bank-bailout-program-ends-in-march-then-what-202402161921
Wasn 't the CFPB specifically created to prevent things like this?/sarc
Wasn 't the CFPB specifically created to prevent things like this?/sarc
“Just a rounding error.”
more like a decimal placement error: losses in “amended” report over TEN times the original report ...
RUH-ROH
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