New York Community Bancorp Inc.’s continued its freefall Thursday as it triggered the steepest drop in regional-bank stocks since the collapse of Silicon Valley Bank. New York Community Bancorp’s
NYCB,
-11.15%
stock sank 12% in morning trading Thursday, putting it on track for the lowest close since July 2000.
The bank led steep losses in the banking sector with the SPDR S&P Regional Banking ETF
KRE
down by 6.1% on Thursday as its slide continued from the previous session. The KRE index is now down 10.9% the past two days, the biggest 2-day selloff since it tumbled 16.2% over the two sessions ended March 13, 2023 on the heels of the collapse of Silicon Valley Bank. The trouble began early Wednesday, when New York Community Bancorp posted a surprise loss and cut its dividend, sending the shares down by 37% in the largest one-day drop in its history. The bank slashed its dividend to 5 cents a share from 17 cents a share and also took a $185 million loss on two loans, including an office loan. While some on Wall Street have said the issues appear to be contained to the bank’s specific challenges to meet capital requirements, investors seem to be betting that New York Community Bancorp’s problem with one office loan could trigger losses at other lenders. The office-space situation has been at the forefront as workers remain at home and the value of office space loans potentially weighs on regional banks with exp …
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NYCB,
-11.15%
stock sank 12% in morning trading Thursday, putting it on track for the lowest close since July 2000.
The bank led steep losses in the banking sector with the SPDR S&P Regional Banking ETF
KRE
down by 6.1% on Thursday as its slide continued from the previous session. The KRE index is now down 10.9% the past two days, the biggest 2-day selloff since it tumbled 16.2% over the two sessions ended March 13, 2023 on the heels of the collapse of Silicon Valley Bank. The trouble began early Wednesday, when New York Community Bancorp posted a surprise loss and cut its dividend, sending the shares down by 37% in the largest one-day drop in its history. The bank slashed its dividend to 5 cents a share from 17 cents a share and also took a $185 million loss on two loans, including an office loan. While some on Wall Street have said the issues appear to be contained to the bank’s specific challenges to meet capital requirements, investors seem to be betting that New York Community Bancorp’s problem with one office loan could trigger losses at other lenders. The office-space situation has been at the forefront as workers remain at home and the value of office space loans potentially weighs on regional banks with exp …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]