New York Community Bancorp: Just The Tip Of The Upcoming Banking Crisis Iceberg

It's over for the shareholders anyway. Could be FDIC Thursday:

NYCB Stock Is Sinking on Report It's Looking to Raise Capital -- Barrons.com
12:25 pm ET March 6, 2024 (Dow Jones)

By Emily Dattilo



Shares of New York Community Bancorp were tumbling after The Wall Street Journal reported that the regional bank was seeking to raise equity capital.

The Journal report cited people familiar with the matter.

The stock was down 32% to $2.18 in trading Wednesday. The stock has dropped 78% this year.
 
Overnight said:
ONNTSA.
(Oh No Not This Shit Again.)

Is this spring of 2023 all over again?
mmmm.
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it took 12 months before the first whiff of the mortgage crisis took down the first bank and then 6 months before the world realized that wasn’t an isolated incident.
 
newwurldmn said:
it took 12 months before the first whiff of the mortgage crisis took down the first bank and then 6 months before the world realized that wasn’t an isolated incident.
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Its a product of the US Fed and banking environment. Many of these commercial buildings could easily be converted to residential condos/Apartments/Co-ops/or some similar conversion. But the banks KNOW that they will get bailed out. They always get bailed out and this injects a toxic dynamic into the entire banking and risk system. There is No Longer an accounting of bad management and bad executive execution. Radically bad decisions no longer go punished in banking and financing in general anymore. When a banking financing sector goes badly its just easier for them to walk away and let the tax payer bail them out.

I would have started converting downtown offices to apartments way back in 2020 when it became so obvious (see: WeWork and its down fall).
 
Pricechange said:
Its a product of the US Fed and banking environment. Many of these commercial buildings could easily be converted to residential condos/Apartments/Co-ops/or some similar conversion. But the banks KNOW that they will get bailed out. They always get bailed out and this injects a toxic dynamic into the entire banking and risk system. There is No Longer an accounting of bad management and bad executive execution. Radically bad decisions no longer go punished in banking and financing in general anymore. When a banking financing sector goes badly its just easier for them to walk away and let the tax payer bail them out.

I would have started converting downtown offices to apartments way back in 2020 when it became so obvious (see: WeWork and its down fall).
More...

Most commercial buildings can’t be converted easily. It requires an internal gutting and most buildings can’t support the habitation rules (like a window in every room). Otherwise NYC would be 100percent condos.

When banks get bailed out, the depositors get bailed out. The shareholders get wiped out (and this includes the shares the executives own).
 
Pricechange said:
Its a product of the US Fed and banking environment. Many of these commercial buildings could easily be converted to residential condos/Apartments/Co-ops/or some similar conversion. But the banks KNOW that they will get bailed out. They always get bailed out and this injects a toxic dynamic into the entire banking and risk system. There is No Longer an accounting of bad management and bad executive execution. Radically bad decisions no longer go punished in banking and financing in general anymore. When a banking financing sector goes badly its just easier for them to walk away and let the tax payer bail them out.

I would have started converting downtown offices to apartments way back in 2020 when it became so obvious (see: WeWork and its down fall).
More...
This dynamic is exactly whats happening here in San Francisco. You got empty building in the Financial District amongst others and the owners haven't dropped rental rates for exactly the reason that they know bailouts are coming and so the buildings stay empty. So then now you have restaurants & retailers closing shop and leaving. Union Square in SF is slowly getting hollowed out.

Moral Hazard personified thanks to the idiots running this country since 2008.
 
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