Posted 3/1/2024, 4:38:06 PM
NY Community Bancorp in Turmoil After Signature Bank Deal; CEO Exits, Junk Rating, Surprise Losses
- New York Community Bancorp struggling financially after acquiring failed Signature Bank a year ago, shares plunged 23% on Friday
- Longtime CEO Cangemi stepped down abruptly, bank delayed annual financial report citing "material weakness" in loans
- Facing losses from falling commercial real estate values during pandemic and higher regulatory scrutiny after expansion
- Reported surprise $252M Q4 loss, $2.4B goodwill impairment charge, credit rating downgraded to "junk"
- Replacing Cangemi as CEO with Flagstar's former CEO DiNello, citing ineffective oversight and risk management of loans