New York Community Bancorp's Stock Rebounds 6% After Volatile Trading Day
Regional lender New York Community Bancorp saw its stock rise over 6% after falling as much as 14% earlier in the day. The bank's new executive chairman, Alessandro DiNello, reassured investors that deposits have seen virtually no outflows and are up year-over-year. NYCB also said it has strong liquidity, with $37.3 billion exceeding uninsured deposits, though Moody's downgraded the bank's credit rating to junk. Some analysts remain cautious due to headwinds like commercial real estate loan exposure and difficulty raising long-term debt.
Transcript
00:00 It's Benzinga and here's what's on the block.
00:02 Regional lender New York Community Bank Corp saw its stock rise over 6% after falling as
00:07 much as 14% earlier in the day. The bank's new executive chairman Alessandro Dinello
00:11 reassured investors that deposits have seen virtually no outflows and are up year over year.
00:16 NYCB also said it has strong liquidity with $37.3 billion exceeding uninsured deposits,
00:21 though Moody's downgraded the bank's credit rating to junk. Some analysts remain cautious
00:25 due to headwinds like commercial real estate loan exposure and difficulty raising long-term debt.
00:30 Regulators say they're closely monitoring individual banks for signs of stress from CRE loans,
00:34 particularly in office markets. Lawsuits have been filed against NYCB,
00:38 alleging it misled shareholders about financial risks.
00:41 For all things money, visit Benzinga.com.