Posted 3/7/2024, 9:16:14 PM
NYCB Faces Ongoing Struggles After $1B Rescue as Deposits Drop and Credit Rating Sinks
- NYCB lost 7% ($7.8B) of its deposits in one month, highlighting challenges after its $1B rescue
- New CEO (Joseph Otting) and investors (Mnuchin, Hudson Bay Capital) take control, reduce dividend
- Deposits down 5% YTD; executives say deposit costs not "crazy”
- Fitch cut credit rating to junk last week; new capital could “limit downside”
- Execs won't commit to not needing more capital, will update in 30 days on "vision"