Turmoil at New York Community Bancorp (NYCB)

SOURCE finance.yahoo.com
New York Community Bancorp (NYCB) is facing turmoil with the exit of CEO Thomas Cangemi, weaknesses in internal controls, and a $2.7 billion fourth-quarter loss. Stock plunged 28% and Alessandro DiNello has been appointed as the new CEO.

Key Points

  • Appointment of DiNello as CEO after Cangemi's exit
  • $2.7 billion fourth-quarter loss due to impairment charge
  • Identification of material weaknesses in internal controls
  • Hiring of new chief risk officer and chief account executive
  • Concerns about exposure to rent-regulated apartments

Pros

  • Appointment of new CEO DiNello to lead the bank
  • Identification of internal control weaknesses for remediation
  • Strong liquidity and solid deposit base

Cons

  • Exit of CEO Cangemi amidst challenges
  • Fourth-quarter loss of $2.7 billion
  • Stock price plunged 28%