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shares of New York Community Bancorp It fell more than 26% on Friday after the regional lender announced a leadership change and disclosed its internal control issues.
The regional bank announced after market close Thursday that its executive chairman, Alessandro Dinello, is taking on the role of president and CEO, effective immediately. The NYCB has been under pressure in recent months due to concerns about its exposure to commercial real estate.
NYCB shares fell sharply in after-hours trading.
The bank also announced a revision to its fourth quarter results, adding a disclosure about its internal risk management.
“As part of management’s assessment of the Company’s internal controls, management identified material weaknesses in the Company’s internal controls related to internal credit reviews, including ineffective oversight, risk assessment,” the company said in a filing with US Securities. and resulted from surveillance activities.” exchange Commission.
Dinello previously served as CEO of Flagstar Bank, which was acquired by NYCB in 2022. He was named acting chairman at NYCB in February, shortly after Moody’s Investors Service downgraded the bank’s credit rating to junk status.
“Although we have faced recent challenges, we are confident in our bank’s direction and its ability to deliver for our customers, employees and shareholders over the long term. The changes we are making to our Board and leadership team This reflects the beginning of a new chapter,” Dinello said in a press release Thursday.
In another leadership change, Marshall Lux was promoted to Presiding Director of the NYCB Board, replacing Hanif Dahya. According to the press release, Lux served as global chief risk officer for Chase Consumer Bank at JPMorgan from 2007 to 2009.
Shares of NYCB have fallen 53% year to date, driven by its disclosure on Jan. 31 that it had taken a larger-than-expected charge against potential loan losses.
Fears of loan losses have stoked fears about the commercial real estate market and the condition of regional banks more broadly. Several regional banks failed in 2023, including Silicon Valley Bank, after customers and investors became uneasy about the value of loans on bank balance sheets.
NYCB was actually the acquirer of one of those failed banks, Signature, in March last year.
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