(Bloomberg) — Steve Mnuchin, former Treasury Secretary under Donald Trump, and a longtime associate are revisiting their strategy to profit from a struggling US bank. Mnuchin’s Liberty Strategic Capital, along with other investors, injected over $1 billion into New York Community Bancorp and effectively took control of the ailing lender to apartment landlords. The deal, announced Wednesday, resulted in the appointment of former Comptroller of the Currency Joseph Otting as chief executive officer. This intervention caused the troubled lender’s stock to soar, providing their coalition with an instant paper profit and the potential to earn billions more.
“The capital infusion couldn’t have been more timely,” said Gary Townsend, founder of family office GBT Capital Management. Otting’s appointment “provides some regulatory bulletproofing,” he said, adding that it “never hurts to have the…”
2024-03-06 20:27:18
Post from finance.yahoo.com