"NYCB's Deposit Losses and Mnuchin's $1bn Deal: Inside the Bank's Struggle"
TL;DR Summary
Customers of New York Community Bank withdrew $6 billion in deposits, causing a 7% decrease, but it's not a bank run. The bank secured a $1 billion investment and saw its shares rise after a steep plunge. NYCB is in crisis mode after reporting a surprise loss and being downgraded to junk status by credit rating agencies. The bank also announced a dividend cut and faces concerns about setting aside more reserves and estimating losses from soured loans, which could limit its profitability.
- Customers are pulling their cash from NYCB, but it’s no bank run CNN
- Moody's places embattled lender NYCB's rating on 'review for upgrade' Yahoo Finance
- How Steven Mnuchin pulled off a $1bn deal to steady a teetering US bank Financial Times
- NYCB says it lost 7% of deposits in the past month, slashes dividend to 1 cent CNBC
- Is Steve Mnuchin the Guy to Stop the Commercial Real-Estate Crisis? New York Magazine
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