New York Community Bancorp’s Rapid Expansion Has Exacerbated Risk, Says Banking Expert

The news that troubled New York Community Bancorp (NYCB) has secured the help of powerful investment firms and appointed a new CEO brought relief to many in the markets who feared that the financial institution might go the way of Silicon Valley Bank, Signature Bank, Credit Suisse, and other once-powerful players that have collapsed in recent years.

NYCB announced that Liberty Strategic Capital, Hudson Bay Capital, Citadel Global Equities, and other investment firms had agreed to commit to a total equity investment of $1 billion. After news of the deal broke, NYCB’s shares, which had fallen by double digits in the days prior, went up nearly 30 percent.


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