Fintech Nexus Newsletter (March 7, 2024): After a $1b cash injection is the worst over for NYCB?
The New York Community Bank saga has occupied the headlines for much of the past month. But the bank may finally be seeing light at the end of the tunnel.
Yesterday, NYCB received a $1 billion infusion of capital from a group that included former Treasury Secretary Steve Mnuchin and former OCC head Joseph Otting.
Otting will become the new CEO, the third person to hold that title in the last few weeks.
The bank announced today that it has lost 7% of its deposits in the last month, a surprisingly low percentage after what we saw a year ago with SVB. NYCB is also slashing its dividend to 1 cent per share.
Investors were pleased with this development as the stock price is up over 100% from its low yesterday before the announcement of the capital injection.
As the one-year anniversary nears for the SVB debacle, stability at NYCB will help with confidence in the banking system.
Featured
> NYCB says it lost 7% of deposits in the past month, slashes dividend to 1 cent
NYCB had $77.2 billion in deposits as of March 5, NYCB said in an investor presentation tied to the capital raise, down from $83 billion it had as of Feb. 5.
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