{"id":1455871,"date":"2024-02-07T14:02:03","date_gmt":"2024-02-07T19:02:03","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1455871"},"modified":"2024-02-07T14:02:03","modified_gmt":"2024-02-07T19:02:03","slug":"whatever-it-takes-nycb-shares-drop-after-chairman-reassures-virtually-no-deposit-outflow-from-branches","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/whatever-it-takes-nycb-shares-drop-after-chairman-reassures-virtually-no-deposit-outflow-from-branches\/1455871\/","title":{"rendered":"“Whatever It Takes” – NYCB Shares Drop After Chairman Reassures “Virtually” No Deposit Outflow From Branches"},"content":{"rendered":"

“Whatever It Takes” – NYCB Shares Drop After Chairman Reassures “Virtually” No Deposit Outflow From Branches<\/span><\/p>\n

\n

NYCB shares puked down to $3.50 overnight after Moody’s downgraded<\/strong> them to junk.<\/p>\n

This morning, the beleaguered, CRE-heavy bank released a statement <\/a>from Chief Executive Thomas Cangemi that:<\/p>\n

“The Moody’s downgrade is not expected to have a material impact on our contractual arrangements.”<\/em><\/strong><\/p>\n

Which seems a little disingenuous, given Moody’s comments on the fact that one of the bank’s major vulnerabilities is its need for market financing.<\/p>\n

Additionally, as Goldman’s Sara Cha notes, the lender stated that deposits are up from YE23 at $83b and that total liquidity at the firm exceeds uninsured deposits<\/strong> ($37.3b vs $22.9b of uninsured deposits), while adding that “this doesn’t give much insights into types of deposits,”<\/strong> and it does show a decline in uninsured deposits.<\/p>\n

That data was as of the close on 2\/5 (i.e before yesterday’s share price collapse and the downgrade).<\/p>\n

The bank also named board member Alessandro (Sandro) DiNello as executive chairman to “work alongside” Chief Executive Cangemi in an effort to “improve all aspects of the bank’s operations.”<\/strong><\/p>\n

All of which dragged the share price well off the lows.<\/p>\n

And DiNello has just held a conference call during which he stated that the bank has “seen virtually no deposit outflow from retail branches.”<\/strong><\/p>\n

Interesting choice of words – what about deposit flight from online?<\/strong><\/em><\/p>\n

NYCB’s CFO commented that deposits on Feb 6th were “relatively stable” <\/strong><\/em>with Feb 5th.<\/p>\n

DiNello reassured that the lender is focused on doing “whatever it takes” to build capital,<\/strong> has “really curtailed” CRE origination<\/strong> in recent months, and will consider loan sales among the options to reduce CRE exposure, as well as selling assets<\/strong>.<\/p>\n

The market’s response was disappointment…<\/p>\n

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

Not exactly the vote of confidence they were expecting as shares are now down 4% from yesterday’s close.<\/strong><\/p>\n

Jamie Dimon says your deposits will make a welcome addition to my financial empire https:\/\/t.co\/PGD8oadBTZ<\/a><\/p>\n

\u2014 zerohedge (@zerohedge) February 7, 2024<\/a><\/p>\n

We warned…<\/p>\n

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

…and there’s lots of big bank cash.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nWed, 02\/07\/2024 – 09:02<\/span><\/p>\n

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

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

“Whatever It Takes” – NYCB Shares Drop After Chairman Reassures “Virtually” No Deposit Outflow From Branches NYCB shares puked down to $3.50 overnight after Moody’s…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1455871","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-66JN","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1455871","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=1455871"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1455871\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1455871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1455871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1455871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}