NYCB just raised over $1.0 billion: its stock is recovering

New York Community Bancorp Inc (NYSE: NYCB) has raised over $1.0 billion in new capital from several investment firms. Its stock is back in green for the day at writing.

Former Treasury Secretary also invested in NYCB

Firms that invested in NYCB in exchange for equity include Liberty Strategic Capital of the former Treasury Secretary – Steven Mnuchin – who said in a press release today:

Mnuchin was also named to the board of $NYCB on Wednesday alongside Joseph Otting, Allen Puwalski, and Milton Berlinski.

Shares of the bank holding company are still down about 65% versus the start of this year.

New York Community Bancorp names a new CEO

New York Community Bancorp also named Joseph Otting its new chief executive on Wednesday and said Alessandro DiNello will transition to the role of its non-executive chairman.

Note that Otting served as Comptroller of the Currency between 2017 and 2020.  

Just days ago, the struggling regional bank disclosed “material weaknesses” in its “internal controls related to loan review” and revised its loss for the fourth quarter to $2.7 billion – well above expectations.

$NYCB also slashed its dividend by a whopping 71% to 5 cents per share last week. Wall Steet currently has a consensus "hold" rating on shares of the financial services company based out of Hicksville, New York.