New York Community Bank ($NYCB): The former Head of the OCC, the top bank regulator, is now running NYCB. The former Treasury Sec'y (Mnuchin) is an investor. It's hard to see how NYCB blows up now. What I want to know… 1) Is the entity that invested a PE firm or a Bank Holding Company? It looks like the former… If so, then, 2) What % of the bank does the investor group own? Bank Hold Co Act limits the amount a non-bank can own in a bank and does not allow a non-bank to 'control' a bank. The CEO was replaced with Otting. That indicates Control. A good reporter should dig into this transaction. The Bank Hold Co Act makes it extremely difficult for non-banks and PE firms to bail out banks. How exactly did this transaction get done? (I have no position)
Ram Ahluwalia, CFA’s Post
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Current environmental conditions have been tricky pretty much across the board over the past few years. Various sectors have run into their own problems, financial sector among them. Back in March 2023 Silicon Valley, First Republic and Signature bank were among the biggest banks to fail. New York community bank announced their earnings last week causing the stock to plummet now nearly 60%. So I want to give some context, New York community bank brought the assets of Signature bank back in March; when their earnings came out it showed: huge loan losses, cut dividends and their capital is down. As banks are regulated to a higher degree in relation to their asset value. So when NYCB acquired Signature Bank it put them over the next bracket of regulations. This in turn set of alarms on how the bank is being managed. Finally, what can this mean for the rest of the financial sector? If one bank fails, what this can lead to is other banks to follow. This is called a contagion, it's like if one person has a cold others will have a cold. However, from what I have read if NYCB was to fail this is an extremely specific issue with this individual bank so it's unlikely that it wall cause other issues across the sector. #banking #invesment #finance #money #wealthgrowth
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FCRA Lawsuits and CFPB Complaints Start Year Up Significantly, Former Treasury Secretary Mnuchin Leads $1 Billion Attempt to Rescue NYCB/Flagstar and Names Former OCC Leader Joseph Otting as CEO, CFPB Bans Excessive Credit Card Late Fees, and more top headlines from this week. Catch up on all of the top news from this week: https://hubs.la/Q02nB32D0 READER NOTE: If you find this of value, please like, comment, or repost it to your network. #banks #consumerlending #compliance #creditrisk #creditreporting #cfpb #fintech #news #industryupdates #TheScanner
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TD Bank faces regulatory scrutiny over alleged involvement in a US money-laundering scheme. Analysts predict significant penalties and constrained growth in the US market. Shares plummeted following revelations of the investigation. Tap on the link to know more: https://lnkd.in/d2ytyn-K #urbananews #newsupdate #Canada #TDBank #RegulatoryScrutiny #MoneyLaundering #USMarket #Penalties #SharePriceDrop
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New York Community Bank's stock plunged today after it boosted reserves and cut its dividend in the fourth quarter to meet the tougher demands of running with the big banks - the need for additional capital to meet regulatory requirements. Latest from Phil Scipio and me for IFR. NYCB said the dividend cut and the sharp increase in loan loss provisions were part of the lender's preparations for its new life as a Category 4 bank. NYCB gained that status after it bought a large chunk of Signature Bank's assets last year after that bank collapsed at the start of the regional banking crisis of 2023. The acquisition pushed assets under management at NYCB above the US$100bn thereshold, making it subject to new capital and liquidity requirements proposed last year. Even before NYCB's results, analysts said banks with assets of just above US$100bn would need to aggressively grow to justify the additional compliance and capital costs that came with a Category 4 desgination. Otherwise, it might make more sense to pare down the bank and avoid that threshold altogether. https://lnkd.in/es6TgxUm
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7moGreat questions, Ram Ahluwalia, CFA!