Posted 3/6/2024, 9:03:09 PM
Mnuchin Group Invests $1B in NY Community Bank, Names New CEO to Restore Confidence
- New York Community Bank announces $1 billion investment from group including former Treasury Secretary Steven Mnuchin to regain investor confidence after stock price falls 45%
- Former Comptroller Joseph Otting to become new CEO, replacing recent CEO appointments
- Mnuchin's firm contributing $450 million, has experience turning around troubled IndyMac Bank after 2008 crisis
- Weaknesses in commercial real estate lending and tighter regulatory scrutiny since NYCB grew above $100 billion in assets contributed to recent troubles
- Crisis echoes troubles at Silicon Valley Bank and Signature Bank last year; Fed Chair Powell says commercial real estate issue "manageable" but some losses likely