"NYCB's Credit Woes Spread to Europe as New Chairman Steps In"

New York Community Bancorp (NYCB) faced its third credit-rating cut due to concerns over its exposure to commercial real estate (CRE), prompting rating agencies to downgrade its credit rating. The bank's shares have fallen around 60% since last week, and its management is considering selling off loans in its CRE portfolio or shrinking its balance sheet to bolster its financial strength. The worries over CRE exposure have also affected lenders in Europe and Asia, with concerns about potential global contagion. Despite these concerns, there is little evidence that banking worries are denting confidence in the broader stock market, and U.S. Treasury Secretary Janet Yellen expects additional stress on banks and some financial losses from weakness in the U.S. commercial real estate market.