The New York Neighborhood Financial institution saga has occupied the headlines for a lot of the previous month. However the financial institution might lastly be seeing gentle on the finish of the tunnel.
Yesterday, NYCB obtained a $1 billion infusion of capital from a bunch that included former Treasury Secretary Steve Mnuchin and former OCC head Joseph Otting.
Otting will change into the brand new CEO, the third particular person to carry that title in the previous couple of weeks.
The financial institution introduced at present that it has misplaced 7% of its deposits within the final month, a surprisingly low proportion after what we noticed a yr in the past with SVB. NYCB can be slashing its dividend to 1 cent per share.
Buyers have been happy with this growth because the inventory worth is up over 100% from its low yesterday earlier than the announcement of the capital injection.
Because the one-year anniversary nears for the SVB debacle, stability at NYCB will assist with confidence within the banking system.
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> NYCB says it misplaced 7% of deposits up to now month, slashes dividend to 1 cent
NYCB had $77.2 billion in deposits as of March 5, NYCB stated in an investor presentation tied to the capital increase, down from $83 billion it had as of Feb. 5.
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