Menu
Banking Exchange Magazine Logo
Menu

New York Community Bancorp Faces Class Action

Sued this week by shareholders due to commercial real estate losses sending the stock down by more than 50%

  • |
  • Written by  Banking Exchange staff
 
 
New York Community Bancorp Faces Class Action

New York Community Bancorp was sued this week by shareholders due to commercial real estate losses sending the stock down by more than 50%.

Commercial real estate holdings have been and will continue to be a problem for banks and institutional investors. Shareholders claim that the bank did not disclose the need to have more cash and thus cut its dividend.

Essentially, the suit claimed that the company misled them through positive assessments on financial guidance that was, in their estimation, clearly inaccurate.

The bank is based in Hicksville, New York and has several hundred branches. Its fourth quarter loss stunned Wall Street last week reporting more than $260 million in losses in a single quarter. In response, the banks announced a major dividend cut. The bank took over Signature Bank about one year ago, only to find its own problems due to commercial real estate.

Stubborn interest rates have also hurt companies exposed to the result of low occupancy banks and institutions are not able to refinance debt and thus need to hold cash rather than pay dividends.

back to top

Sections

About Us

Connect With Us

Resources

WEBINAR

Mitigating loss: Understanding the fraud triangle

Time/Date: Wednesday, December 11th, 2024, 2:00 ET

Fraud continues to be top of mind for bank executives, with hard dollar losses growing at an all-time high.

In this session, we will discuss the fraud triangle and gain valuable insights into the psychology behind fraud, and the tangible and intangible losses incurred due to fraud schemes.

You will come away with a comprehensive understanding of how the fraud triangle applies to your customers, various types of fraud affecting community banks, and actionable steps to mitigate their impact.

REGISTER NOW!

This webinar is brought to you by:

Abrigo logo

Banking Exchange logo