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NYCB's stock is in freefall as questions mount over the bank's ability to survive

·1 min

Shares of New York Community Bank (NYCB) dropped over 40% after reports that the regional lender is seeking a significant cash infusion. Bankers are trying to gauge investor interest in buying stock in the company. The stock was temporarily halted from trading. Questions arise about depositors pulling their funds as the bank reported stable deposits, despite a surprise loss last quarter due to bad commercial real estate loans. The bank also delayed its required financial disclosure due to identified control weaknesses. The management shake-up added to the bank’s challenges. The stock is nearing an all-time low, down more than 80% this year. Comparable regional banks with high commercial real estate exposure have been less impacted.