New York Community Bank’s stock stops trading, bank seeks funding
The post New York Community Bank’s stock stops trading, bank seeks funding appeared on BitcoinEthereumNews.com. Yesterday turned out to be a dramatic day for New York Community Bank as its stock nosedived by 42%, leading to a trading halt. The word around town was that this New York-based bank was on the lookout for a cash boost after a series of not-so-great performances. Sources close to the matter have revealed that the bank is in talks with potential investors to pour in some much-needed liquidity to get its balance sheet back on track. The situation looked grim as NYCB’s shares faced multiple trading stops during the day’s trading session, with a staggering drop of over 40%. Earlier in the year, the bank’s stock was trading above the $10 mark but has since plummeted to just under $2. This year has been especially rough for NYCB, as shown by its decision at the end of January to increase the amount of money it sets aside for potential loan losses. To add salt to the wound, Moody’s Investors Service went ahead and slashed the bank’s credit rating down to junk status. The financial trouble at NYCB has caught the attention of investors and market experts, who see similarities with what happened to Silicon Valley Bank and First Republic Bank last spring. The banking industry is under a lot of stress because inflation is still high and no one knows when interest rates will start going down. On the bright side, NYCB was able to recover from its sharp drop and announce that a group of investors would be putting a lot of money into the bank. The over $1 billion rescue comes from a group of investors led by Steven Mnuchin’s Liberty Strategic Capital. The other investors are Hudson Bay Capital and Reverence Capital Partners. This move has given people hope, and Mnuchin said that he thinks…
The post New York Community Bank’s stock stops trading, bank seeks funding appeared on BitcoinEthereumNews.com.
Yesterday turned out to be a dramatic day for New York Community Bank as its stock nosedived by 42%, leading to a trading halt. The word around town was that this New York-based bank was on the lookout for a cash boost after a series of not-so-great performances. Sources close to the matter have revealed that the bank is in talks with potential investors to pour in some much-needed liquidity to get its balance sheet back on track. The situation looked grim as NYCB’s shares faced multiple trading stops during the day’s trading session, with a staggering drop of over 40%. Earlier in the year, the bank’s stock was trading above the $10 mark but has since plummeted to just under $2. This year has been especially rough for NYCB, as shown by its decision at the end of January to increase the amount of money it sets aside for potential loan losses. To add salt to the wound, Moody’s Investors Service went ahead and slashed the bank’s credit rating down to junk status. The financial trouble at NYCB has caught the attention of investors and market experts, who see similarities with what happened to Silicon Valley Bank and First Republic Bank last spring. The banking industry is under a lot of stress because inflation is still high and no one knows when interest rates will start going down. On the bright side, NYCB was able to recover from its sharp drop and announce that a group of investors would be putting a lot of money into the bank. The over $1 billion rescue comes from a group of investors led by Steven Mnuchin’s Liberty Strategic Capital. The other investors are Hudson Bay Capital and Reverence Capital Partners. This move has given people hope, and Mnuchin said that he thinks…
