NYCB’s shares slide sharply when banks support to stop the allocation of funds
Investors in New York Community Bancorp (NYCB) rebounded on Wednesday after shares in the bank plunged 42 percent after the announcement of a $1 billion lifeline from investors.
NYCB is an American regional bank with over $100 billion in assets and a once crypto-friendly signature bank after it collapsed in March 2023.
However, NYCB has seen a period of turmoil after better-than-expected financial results in Q4, a cut in its quarterly dividend and concerns about potential losses from underperforming loans in the commercial real estate sector.
Shares in NYCB fell more than 42% to $1.76 on March 6 before trading was halted, pending news.
Hours later, trading resumed, and shares rallied after he announced the launch of more than $1 billion in strategic equity investments, which he said would “restore investor confidence.”
Shares rose to $4 before falling to $3.40 in afternoon trading.
“With more than $1 billion in capital invested in the bank, we believe we currently have adequate capital,” former Steven Mnuchin said. Treasury Secretary and new NYCB board member who led the capital injection.
The federal bank bailout ends
The NYCB rollercoaster is a week away from the one-day Federal Reserve bank stimulus program that ends on March 11.
The Bank Time Funding Program (BTFP) was launched in March 2023 following the failure of several top banks. The aim was to provide additional funding to “eligible depository institutions” to help banks meet the needs of all depositors.
Related: BTC Price To $1M? Bitcoin bulls dare to dream as NYCB hits 1990s levels.
Since taking office, the U.S. central bank has released $164 billion to struggling banks, according to the St. Louis Fed.
Additionally, in March 2023, when the BTFP was launched amid the US banking crisis and the collapse of Signature Bank and Silicon Valley Bank, the price of Bitcoin (BTC) increased by 40%.
In the year On March 7, angel investor and author Balaji Srinivasan commented on the banking crisis, comparing it to the 2008 financial crisis caused by banks.
“It's like 2008, when everyone was told that mortgage-backed securities were AAA. Except this time, the new toxic waste is the treasury itself.
Journal: Unstable Coins: Debasement, Bankruptcy and Other Risks Looming.
