$1B Later and NYCB Still Has Work to Do

Fresh off of its $1 billion infusion of equity yesterday and New York Community Bancorp executives are still trying to reassure the market of its stability. Joseph Otting, former Comptroller of the Currency in the Trump administration, who was named CEO of the bank as part of the investment, will unveil a new business plan for the institution next month.  The bank has also pledged to reduce its exposure to CRE loans. The bank is pinning its hopes on Otting, its third CEO in weeks, as he is credited with reviving IndyMac, which was bought out of Federal Deposit Insurance Corporation’s receivership in 2009 by an investor group.

But some analysts have their doubts. “Even the link with the OCC may not be the glowing endorsement that it seems, given that it was the OCC waived through NYCB’s acquisition spree that has done so much to get it in trouble in the first place,” said Russ Mould, investment director at AJ Bell, told Reuters.