Moody’s downgrade sends NYCB stock on a rollercoaster ride

Moody’s downgrade sends NYCB stock on a rollercoaster ride

On Thursday, February 1,‍ 2024, the New York ‌Community Bank (NYCB) headquarters in Hicksville, New York, US, was featured in an ⁤image by ​Bing Guan | Bloomberg | Getty Images.

Following a​ two-notch downgrade of ​the bank’s⁢ credit ratings to junk by​ Moody’s Investors​ Service,⁣ New York Community Bank promoted its chairman​ to stabilize its operations. The⁤ stock initially ⁤dropped by 13% on Wednesday ​morning but rebounded to an 8%⁢ increase‍ in⁣ the afternoon, ‍after falling by more than 20% on Tuesday.

Effective immediately, Alessandro DiNello was made executive ⁣chairman, transitioning from nonexecutive chairman, to collaborate with CEO Thomas Cangemi in enhancing all aspects of⁢ the Bank’s operations. The regional bank has experienced a significant ‌decline, losing nearly⁤ 60% of its market value after reporting⁢ a surprise ‌fourth-quarter loss, ⁢mounting losses​ on commercial real estate, and reducing its dividend by 71%⁣ to bolster capital.

Source: www.cnbc.com

Published: 2024-02-07 14:59:24

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