{"id":1455617,"date":"2024-02-06T15:53:09","date_gmt":"2024-02-06T20:53:09","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1455617"},"modified":"2024-02-06T15:53:09","modified_gmt":"2024-02-06T20:53:09","slug":"new-york-community-bancorp-collapse-nears-27-year-lows-after-talks-with-regulator-revealed","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/new-york-community-bancorp-collapse-nears-27-year-lows-after-talks-with-regulator-revealed\/1455617\/","title":{"rendered":"New York Community Bancorp Collapse Nears 27-Year-Lows After ‘Talks With Regulator’ Revealed"},"content":{"rendered":"

New York Community Bancorp Collapse Nears 27-Year-Lows After ‘Talks With Regulator’ Revealed<\/span><\/p>\n

\n

“That’s a nice regional bank lender you got there… be a shame if anything happened to it…”<\/em><\/p>\n

We have warned for months (here<\/a>, here<\/a>, and here most recently<\/a>) – as regional bank shares soared back from SVB crisis lows – that this small bank balance sheet crisis was far from over… and worse still the ‘big banks’ have money to burn<\/strong> with excess reserves (to use, for example, to help the FDIC clean up some small bank issues)…<\/p>\n

<\/a><\/p>\n

Last week we highlighted the dominoes had started falling in regionals, and the initial domino – New York Community Bancorp – is back in the cross-hairs as Bloomberg reports that, according to people with direct knowledge of the matter, mounting pressure from a top US watchdog led to the bank’s surprise decision to slash its dividend and stockpile cash in case commercial real estate loans go bad.<\/strong><\/p>\n

The drastic actions – which prompted a collapse in the bank’s shares – followed behind-the-scenes conversations with officials from the Office of the Comptroller of the Currency<\/strong>, the people said<\/p>\n

Now, far be it from us to speculate but could a quiet call have been made to prompt regulators to suddenly pay attention?<\/p>\n

Why now?<\/strong><\/p>\n

Everything was awesome, remember?<\/p>\n

This all happened the week after The Fed officially killed its free-money ‘arb’ and confirmed the imminent death of its bank bailout facility… and as the Reverse Repo liquidity poll is draining fast.<\/p>\n

And that has sent NYCB shares down 14% this morning, after falling 11% yesterday…<\/p>\n

<\/a><\/p>\n

Which leaves it near its lowest levels since 1997…<\/strong><\/p>\n

<\/a><\/p>\n

…well below the lows reached during the SVB crisis (down 65% from the post-SVB crisis highs).<\/p>\n

The bank’s chief risk officer\u00a0Nicholas Munson\u00a0and chief audit executive\u00a0Meagan Belfinger both appear to have left the bank in recent months.<\/p>\n

NYCB has said building reserves is part of its widely expected transition to more stringent capital rules after the lender swelled beyond $100 billion in assets while acquiring parts of Signature Bank last year<\/strong>.<\/p>\n

Well, given the massive drop in deposits last week (on a non-seasonally-adjusted basis) by domestic banks<\/a>…<\/p>\n

<\/a><\/p>\n

We wonder if SVB 2.0 is about to hit (and prompt those Fed rate-cuts to be brought forward)?<\/p>\n

Bonds are bid this morning, gold and crypto are rallying, and rate-cut odds are on the rise again.<\/strong><\/em><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 02\/06\/2024 – 10:53<\/span><\/p>\n

\u200bRead More<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

New York Community Bancorp Collapse Nears 27-Year-Lows After ‘Talks With Regulator’ Revealed “That’s a nice regional bank lender you got there… be a shame if…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1455617","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1455617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1455617"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1455617\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1455617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1455617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1455617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}