Current:Home > Contact-usNew York Community Bancorp shares plummet amid CEO exit and loan woes-Angel Dreamer Wealth Society D1 Reviews & Insights
New York Community Bancorp shares plummet amid CEO exit and loan woes
View Date:2024-12-23 16:14:54
Shares of New York Community Bancorp plunged by double digits on Friday after the sudden exit of the regional bank's longtime president and CEO. The departure coincides with the bank's disclosure of "material weaknesses" related to loans.
Thomas Cangemi relinquished his leadership roles at the bank after 27 years, with Alessandro DiNello, who serves as its board's executive chairman, succeeding him, the bank said in a statement late Thursday. The bank also said in a regulatory filing that it had discovered "material weaknesses" in loan controls and took a $2.4 billion charge.
After plummeting almost 30% at Friday's start, shares of the Hicksville, N.Y.-based commercial real estate lender bank were lately down nearly 23%, and have lost more than half their value this year.
The bank — a major lender to New York City apartment landlords — is not able to file its annual report with the Securities and Exchange Commission, and will have to amend its fourth-quarter results, it said in the Thursday notice to regulators.
"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 bank said in the filing.
The developments come after the company in January said it was stockpiling cash in the event of possible loan troubles.
No banking crisis, analyst says
NYCB's struggles come nearly a year after three midsize lenders were seized by regulators after deposit runs, with the Federal Deposit Insurance Corp. then selling off the assets of the collapsed entities. Following those bank failures, NYCB subsidiary absorbed the deposits and some loans from one of the institutions, Signature Bank.
Yet while NYCB's struggles could be viewed as a warning sign for other regional banks or lenders with sizable commercial real estate loan portfolios, one analyst is pushing back on the idea.
"A lot of the issues are NYCB-specific when it comes to multi-family lending," Steve Moss of Raymond James told CBS News.
He added that NYCB's problems are unrelated to it acquiring Signature's assets, noting that NYCB appears to have been issuing a lot of interest-only loans, without equity from borrowers. Moss also thinks the bank can work through its current woes.
"There is coverage for uninsured deposits, they should have the liquidity to manage through this difficult time," he said.
Kate GibsonKate Gibson is a reporter for CBS MoneyWatch in New York.
veryGood! (5428)
Related
- Pie, meet donuts: Krispy Kreme releases Thanksgiving pie flavor ahead of holidays
- Morocco earthquake leaves at least 2,000 dead, damages historic landmarks and topples buildings
- Cybersecurity ‘issue’ prompts computer shutdowns at MGM Resorts properties across US
- Amy Poehler, Jimmy Fallon's tense 'SNL' moment goes viral after 'Tonight Show' allegations
- Biden EPA to charge first-ever ‘methane fee’ for drilling waste by oil and gas companies
- 6 people fatally shot in Greece, at a seaside town near Athens
- U.K. police catch terrorism suspect Daniel Khalife, who escaped from a London prison
- Senate committee to vote on Wisconsin’s top elections official as Republicans look to fire her
- 2 credit unions in Mississippi and Louisiana are planning to merge
- Novak Djokovic reveals the first thing he wanted to do after his U.S. Open win
Ranking
- Atmospheric river to bring heavy snow, rain to Northwest this week
- North Carolina governor appoints Democrat to fill Supreme Court vacancy
- What does 'iykyk' mean? Get in on the joke and understand how to use this texting slang.
- Arizona group converting shipping containers from makeshift border wall into homes: 'The need is huge'
- 5-year-old boy who went missing while parent was napping is found dead near Oregon home, officials say
- 'I'm drowning': Black teen cried for help as white teen tried to kill him, police say
- Ukraine claims to recapture Black Sea oil platforms seized during Crimea’s annexation
- When does 'Welcome to Wrexham' Season 2 come out? Release date, trailer, how to watch
Recommendation
-
Sister Wives’ Janelle Brown Alleges Ex Kody Made False Claims About Family’s Finances
-
3 Key Things About Social Security That Most Americans Get Dead Wrong
-
Thousands dead in Moroccan earthquake, 22 years since 9/11 attacks: 5 Things podcast
-
Escaped prisoner Danelo Cavalcante seen driving stolen van, visiting former colleague's house, police say
-
World leaders aim to shape Earth's future at COP29 climate change summit
-
Sarah Burton, who designed Kate’s royal wedding dress, to step down from Alexander McQueen
-
Norway’s intelligence agency says the case of arrested foreign student is ‘serious and complicated’
-
MSU football coach Mel Tucker could face monumental fall after sexual harassment allegations, reporter says