NYCB Stock Plunges Amid CEO Change and Internal Controls Issue

Real-estate lender NYCB is in turmoil after announcing a surprise net loss, appointing a new CEO, and revealing material weaknesses in its internal controls. The bank is retroactively booking a $2.4 billion goodwill impairment charge and will file its 2023 annual report late. These disclosures caused NYCB shares to plummet 20% in after-hours trade, following a 53% decline year to date. The troubles are raising concerns about the bank's loans and assets in the real-estate sector, particularly in commercial properties, amid challenges from remote work and higher borrowing costs.