Embattled New York Community Bancorp announced a lifeline of more than $1 billion from a group of investors on Wednesday, after seeing its stock plunge by more than 80% this year.
The deal will bring four new directors to NYCB’s board, including Steven Mnuchin, who served as U.S. Treasury secretary under President Donald Trump.
A report from The Wall Street Journal earlier in the day had said the lender was considering raising cash through the sale of stock in order to shore up confidence in it.
After the announcement of the $1 billion infusion, NYCB’s stock immediately erased those losses and surged toward its best day in nearly a year.
NYCB, which is based in Hicksville, New York, said last week that it had found significant weakness in how it internally reviews loans, caused by ineffective oversight, risk assessment and monitoring activities.
But weakness in commercial real estate is a looming challenge for all kinds of banks, as changes in how people work following the pandemic leave many office buildings with more vacancies.
The original article contains 638 words, the summary contains 173 words. Saved 73%. I’m a bot and I’m open source!
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Embattled New York Community Bancorp announced a lifeline of more than $1 billion from a group of investors on Wednesday, after seeing its stock plunge by more than 80% this year.
The deal will bring four new directors to NYCB’s board, including Steven Mnuchin, who served as U.S. Treasury secretary under President Donald Trump.
A report from The Wall Street Journal earlier in the day had said the lender was considering raising cash through the sale of stock in order to shore up confidence in it.
After the announcement of the $1 billion infusion, NYCB’s stock immediately erased those losses and surged toward its best day in nearly a year.
NYCB, which is based in Hicksville, New York, said last week that it had found significant weakness in how it internally reviews loans, caused by ineffective oversight, risk assessment and monitoring activities.
But weakness in commercial real estate is a looming challenge for all kinds of banks, as changes in how people work following the pandemic leave many office buildings with more vacancies.
The original article contains 638 words, the summary contains 173 words. Saved 73%. I’m a bot and I’m open source!