New York Community Bancorp Stock Plunges 35%
Loan losses surged, and the bank set aside millions of dollars more to prepare for future potential losses.
Chief Executive Thomas Cangemi said the company is adjusting to the regulatory demands of being a large bank after its purchase of assets and liabilities from Signature Bank,
one of three banks that failed in rapid succession in early 2023 after spooked customers pulled cash en masse.
With the Signature deal, which closed last March, NYCB’s total assets surpassed $100 billion, a key regulatory threshold that comes with stricter capital and liquidity standards
The results took some investors back to the bank crisis in early 2023, when Signature, Silicon Valley Bank and First Republic Bank all failed within a span of weeks.
Wall Street Journal 31 January 2024
Dodd-Frank lets the Federal Deposit Insurance Corp. guarantee uninsured deposits under its “systemic risk” exception.”
But banks must fail for the exception to apply and the systemic risk is supposed to be genuine.
Regulators stretched that exception with SVB and Signature, and the Treasury Secretary is now making clear that they will stretch it again to prevent more bank runs on her watch.
The Editorial Board Wall Street Journal 21 March 2023
Kommentarer