New York Community Bancorp's shares plummeted by nearly 23% following the sudden exit of its longtime CEO and the disclosure of "material weaknesses" related to loans, resulting in a $2.4 billion charge. The bank, a major lender to New York City apartment landlords, is unable to file its annual report with the SEC and will have to amend its fourth-quarter results. Despite concerns about its sizable commercial real estate loan portfolios, an analyst believes the bank's issues are specific to its multi-family lending and that it has the liquidity to manage through this difficult time.
New York Community Bancorp has announced the discovery of "material weaknesses" in its financial reporting, prompting the need for restatements of prior financial statements. This revelation comes as the bank undergoes a leadership change, with Thomas Cangemi set to take over as CEO. The bank's audit committee is working to address the issues and improve internal controls.
Credit Suisse's shares hit a new all-time low after its largest investor, Saudi National Bank, said it could not provide any further financial assistance due to regulatory restrictions. The bank's CEO defended its liquidity basis, saying it is "very, very strong," and that it fulfills and overshoots all regulatory requirements. The share price rout renewed a broader sell-off among European lenders, which were already facing significant market turmoil. Investors are also assessing the impact of the bank's disclosure of "material weaknesses" in its financial reporting processes for 2022 and 2021.
