New York Community Bancorp Inc. has found itself a life preserver, but it has yet to get itself out of the sea. The troubled regional lender won a $1 billion capital injection from a group of investment funds led by former US Treasury Secretary Steven Mnuchin’s Liberty Strategic Capital.

The cash is a vote of confidence in the bank after it admitted last week to “material weaknesses” in its risk and monitoring, discovered as part of a wider inspection of its assets and management practices. NYCB massively increased its provisions for bad loans at its full-year results at the end of January, slashed its dividend and has since written off $2.4 billion of goodwill, actions that led its share price to collapse more than 70% by the start of this week.

QOSHE - Mnuchin Gets NYCB for a Song. Now Comes the Hard Part. - Paul J. Davies
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Mnuchin Gets NYCB for a Song. Now Comes the Hard Part.

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07.03.2024

New York Community Bancorp Inc. has found itself a life preserver, but it has yet to get itself out of the sea. The troubled regional lender won a $1 billion capital injection from a........

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