New York Community Bancorp shares plunge as much as 28% in premarket trading on Friday after the community lender said it discovered “material weaknesses” in how it tracks loan risk and announced its CEO would step down. did.
The New York-based company announced late Thursday that CEO Thomas Cangemi will step down after a 27-year tenure at NYCB and be replaced by Alessandro Dinero, effective immediately.
Dinero, NYCB’s executive chairman, has been acting as the bank’s true boss since the beginning of this month, according to the report. Yahoo Finance. In the weeks leading up to his departure, Mr. Cangemi reported to Mr. Dinero, even changing the bylaws to do so.
According to Yahoo, NYCB board member Hanif “Wally” Dahiya said in a Feb. 25 letter that he “does not support the proposal” for Dinero to become CEO, without giving a reason.
Mr. Dahiya, who was the chairman of the board, also resigned from the board on Thursday.
He will be succeeded by Marshall Lux, who will join the NYCB board in early 2022 and previously served as a senior partner at Boston Consulting Group and from 2007 to 2009 at JPMorgan Chase Consumer.・He previously served as the bank’s global chief risk officer. press release Regarding leadership change.
Separately on Thursday, the top 30 U.S. bank revised its fourth-quarter loss to $2.7 billion from $252 million, citing “internal control issues.”
“As part of management’s assessment of the company’s internal controls, the company identified material weaknesses in the company’s internal controls related to internal loan reviews resulting from inefficient oversight, risk assessment, and monitoring activities,” the company said in a stock exchange filing. have been identified,” he said. commission.
Dinero asserted in the release that NYCB is “confident in the bank’s direction and ability to serve its customers, employees, and shareholders over the long term, despite recent challenges.”
“The changes we are making to our board and management team reflect the new chapter that is underway,” he added.
Representatives for NYCB did not immediately respond to The Post’s request for comment.
NYCB’s restructuring began in late January, a month when the company, a major lender to New York apartment landlords, surprised analysts by cutting its dividend to reserve more cash for loan losses. It’s just the latest development in the next uproar.
The announcement reignited concerns about New York City’s commercial real estate market, which has been struggling with a so-called “urban doom loop” caused by an influx of people working from home during the pandemic. This trend continues despite the return. OBLIGATIONS TO OFFICE.
The status of local banks has also been raised following the sudden collapse of three well-known financial institutions last year: Silicon Valley Bank, Signature Bank, and First Republic Bank.
NYCB acquired Signature in a failed $2.7 billion deal in March 2023.
NYCB stock is down 53% since the beginning of the year.
