(Reuters) – New York Community Bancorp shares fell 30% before the bell on Friday after it found “material weaknesses” in internal controls related to its loan review, adding worries to investors already fretting over its commercial real estate (CRE)exposure. The weaknesses were related to “ineffective oversight, risk assessment and monitoring activities”, the bank said, adding […]
A pedestrian walks past a New York Community Bank branch in Brooklyn. PHOTO: Spencer Platt/Getty Images Karl Marx once said, “History repeats itself: the first time as tragedy, the second time as farce.” Marx’s assessment of history’s cyclical nature feels strangely appropriate for describing the state of the nation’s regional banking system in early 2024. […]
(Bloomberg) — Former Treasury Secretary Lawrence Summers said the Federal Reserve and other agencies are right to be probing financial risks tied to commercial properties, saying this was a more important effort in the near term than its initiative to boost capital standards among big banks. Most Read from Bloomberg “Regulators are right to be […]
(Bloomberg) — Property mogul Barry Sternlicht last week said there’s $1.2 trillion of real estate losses in offices alone and “nobody knows exactly where it all is.” Investors are growing alarmed that smaller banks might be on the hook for much of the wipeout. Most Read from Bloomberg Concerns mounted over the past two weeks […]