NYCB Announces $1.05B Capital Infusion and Reverse Stock Split

New York Community Bancorp Inc. has closed a deal to raise over $1 billion through an equity investment led by Steven Mnuchin's Liberty Strategic Capital, Hudson Bay Capital, and Reverence Capital Partners, with Mnuchin appointed as lead independent director. The troubled commercial real estate lender issued common stock at $2 per share to the investors and plans a minimum reverse stock split of three for one. Former comptroller of the currency Joseph Otting will become CEO, and the company's board will include Mnuchin and two other investors. The completion of the equity raise aims to strengthen the balance sheet and restore investor confidence, despite being dilutive to existing holders.