Posted 3/5/2024, 12:00:00 AM
NYCB Stumbles Under Weight of Risky Growth, NYC Real Estate Exposure
- NYCB ballooned in size through acquisitions despite warnings about risks to its lending portfolio
- New rent regulations and the pandemic put pressure on its concentrated NYC real estate loan book
- Rapid growth to over $100B in assets triggered tighter oversight just as cracks emerged
- The bank shocked investors by setting aside 10X more for loan losses and slashing its dividend
- Leadership changes, ratings downgrades, and a 73% stock plunge have followed as risks materialized