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Shares of New York Community Bancorp sank by double digits for the fourth time in five days, extending a collapse that was triggered by a surprise quarterly loss and move to slash its dividend. The bank indicated that it is shoring up its balance sheet following the acquisition of failed Signature Bank and trouble in its large books of commercial real estate.

Given the banking instability we saw in early 2023 (a la Silicon Valley Bank, Signature Bank, and First Republic), investors are selling first and asking questions later. Sharp stock sell offs added to a crisis of confidence that ultimately led to fatal deposit runs at those aforementioned banks. Could the recent moves in stock price suggest a need for caution?

NYCB is fighting to assure investors and the markets that its ok and there is nothing to be concerned about…

New York Community Bank stock ticks up after lender says deposits increased

via CNN.com <— CLICK HERE for complete article

Troubled regional lender New York Community Bancorp attempted to reassure investors Wednesday that it has enough liquidity to stay afloat after the stock shed about 60% of its value over the past eight days and Moody’s Investors Service downgraded the bank’s credit grade to junk.

“The challenge today is not easy. But this company has a strong foundation, strong liquidity and a strong deposit base, which gives me confidence for our path forward,” Alessandro DiNello, the bank’s new executive chairman, said on a call with investors Wednesday morning.

The bank announced earlier on Wednesday that it had appointed DiNello, formerly the president of Flagstar Bank, to the position effective immediately. NYCB (NYCB) purchased Flagstar in December 2022. The Hicksville-based bank also said it has plans to bring in a new chief risk officer and chief audit executive.