NYCB Halted For Volatility After Falling More Than 60% in 2024
In what is certainly a concerning development, New York Community Bancorp (NYCB) has been halted for volatility after falling more than 60% this year. Subsequently, Moody’s Investors Service downgraded the bank to junk yesterday. Thereafter, it dropped another 8% in premarket trading today.
Last year saw a significant banking crisis lead to a plethora of closures. Indeed, banks like Silicon Valley Bank, Signature Bank, and First Republic Bank had all encountered rapidly deteriorating stock prices. Ultimately, each of these banks would fail in 2023.
Also Read: Circle Announces Partnership With New York Community Bancorp
NYCB Halted Amid Rapid Stock Price Drop, Moody Downgrade
IN 2023, the United States economy was enveloped in a burgeoning crisis for its banking sector. Indeed, a situation that began with plummeting stock prices led to the closure of several prominent financial institutions in the country. Now, one concerning development has many fearing for a similar situation.
Indeed, lender NYCB has halted volatility after falling more than 60% in 2024. The situation got even worse for what is one of the largest banks in the country. Moody’s downgraded the lender to junk, proceeding even more slides for NYCB at the start of Wednesday.
Also Read: JP Morgan CEO Says Banking Crisis Increases Odds of Recession
“NYCB’s Ratings could be further downgraded if the bank were to experience a loss of depositor confidence that challenges the bank’s liquid resources,” the rating agency said according to CNN.
Following its falling stock prices, NYCB issued a press release to assure investors of the bank’s stability. Specifically, it addresses deposits, liquidity, and governance after the continued fall. Within the release, NYCB stated that its total deposits were up in 2024, and its total liquidity was $37.3, which surpassed uninsured deposits.
Additionally, the bank announced a change in leadership. Specifically, it appointed former CEO of Flagstar Bank- who was acquired by NYCB in 2022- Allessandro DiNellow as Executive Chairman. Still, concerns regarding a bank run, and the fate of NYCB abound in the sector today.
Read More
Federal Reserve’s Withdrawal of Crypto Guidance ‘Just Lip Service,’ Says Senator Cynthia Lummis – Here’s Why
NYCB Halted For Volatility After Falling More Than 60% in 2024
In what is certainly a concerning development, New York Community Bancorp (NYCB) has been halted for volatility after falling more than 60% this year. Subsequently, Moody’s Investors Service downgraded the bank to junk yesterday. Thereafter, it dropped another 8% in premarket trading today.
Last year saw a significant banking crisis lead to a plethora of closures. Indeed, banks like Silicon Valley Bank, Signature Bank, and First Republic Bank had all encountered rapidly deteriorating stock prices. Ultimately, each of these banks would fail in 2023.
Also Read: Circle Announces Partnership With New York Community Bancorp
NYCB Halted Amid Rapid Stock Price Drop, Moody Downgrade
IN 2023, the United States economy was enveloped in a burgeoning crisis for its banking sector. Indeed, a situation that began with plummeting stock prices led to the closure of several prominent financial institutions in the country. Now, one concerning development has many fearing for a similar situation.
Indeed, lender NYCB has halted volatility after falling more than 60% in 2024. The situation got even worse for what is one of the largest banks in the country. Moody’s downgraded the lender to junk, proceeding even more slides for NYCB at the start of Wednesday.
Also Read: JP Morgan CEO Says Banking Crisis Increases Odds of Recession
“NYCB’s Ratings could be further downgraded if the bank were to experience a loss of depositor confidence that challenges the bank’s liquid resources,” the rating agency said according to CNN.
Following its falling stock prices, NYCB issued a press release to assure investors of the bank’s stability. Specifically, it addresses deposits, liquidity, and governance after the continued fall. Within the release, NYCB stated that its total deposits were up in 2024, and its total liquidity was $37.3, which surpassed uninsured deposits.
Additionally, the bank announced a change in leadership. Specifically, it appointed former CEO of Flagstar Bank- who was acquired by NYCB in 2022- Allessandro DiNellow as Executive Chairman. Still, concerns regarding a bank run, and the fate of NYCB abound in the sector today.
Read More