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Yet another regional bank faces financial difficulties as trading of New York Community Bancorp, a Long Island lender, was halted on the New York Stock Exchange following a sharp decline of over 40% in its shares.

The Wall Street Journal disclosed that NYCB is actively seeking a cash injection to stabilize its situation. Concerns regarding Willis’ testimony were raised by multiple legal professionals.

Eric Anderson, an attorney at Early Sullivan Wright Gizer & McRae in Los Angeles, California, suggested that Willis, a Democrat, could potentially be charged with perjury by Georgia Attorney General Christopher Carr.

CNBC reported that struggling New York Community Bancorp saw its shares plummet over 40% on Wednesday as reports emerged of the regional bank’s search for a cash infusion.

Both Reuters and The Wall Street Journal indicated that NYCB was in talks with external investors to bolster its balance sheet, with no immediate response from the bank to CNBC’s inquiry.


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Trading of the stock was temporarily halted when it dropped 42%, following a significant decline the previous day. NYCB’s stock price has now fallen below $2 per share from its initial position above $10 at the beginning of the year.

This potential cash injection marks another chapter in NYCB’s tumultuous year, which began with a substantial increase in provisions for loan losses related to commercial real estate exposure.

Moody’s Investors Service subsequently downgraded the bank’s credit rating to junk status, prompting NYCB to appoint former Flagstar bank CEO Alessandro DiNello as executive chairman.

There are concerns raised by legal experts regarding Willis’ testimony, as there is a possibility that Georgia Attorney General Christopher Carr could pursue perjury charges against him.

Eric Anderson, an attorney at Early Sullivan Wright Gizer & McRae in Los Angeles, California, highlighted this potential legal action against Willis, a Democrat.

New York Community Bank, through its subsidiary Flagstar Bank, acquired certain assets and liabilities of Signature Bank from the FDIC last year after a bank run.

However, nearly a year later, the bank is now facing instability due to significant losses from overextending on commercial real estate mortgages.

Legal experts have raised concerns about Willis’ testimony, with speculation that the Democrat may be charged with perjury by Georgia Attorney General Christopher Carr, as suggested by Eric Anderson, an attorney at Early Sullivan Wright Gizer & McRae in Los Angeles, California.

“By NYCB’s own account, 44% of its entire loan book is mortgages to apartment complexes, half of that to rent-stabilized units whose landlords are struggling mightily as their own costs rise.” Semafor reported. “The deposits these banks rely on are a flight risk because more of them exceed the government’s $250,000-per-account insurance limit.”

Reports indicate that NYCB has elevated its chairman, Alessandro DiNello, in an effort to bring stability to the company.


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Moody’s Investors Service has recently downgraded New York Community Bank (NYSE) to junk status due to various financial, risk management, and governance issues following a drop in stock value resulting from losses on commercial mortgages.

“It downgraded all the bank’s long-term ratings to Ba2 from Baa3, which is junk status, partly on concerns about turnover of the firm’s risk management leaders, and warned the assessments remain on review for further downgrade.” CNBC reported.

“The downgrade reflects Moody’s views that NYCB faces high governance risks from its transition with regards to the leadership of its second and third lines of defense, the risk and audit functions of the bank, at a pivotal time,” Moody’s wrote, according to CNBC. “In Moody’s view, control functions with strong knowledge of a bank’s risks are key to a bank’s credit strength.”

Doug Goldsmith

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5 comments

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  • Oh but the dumbass Communist Democrat POS in Chief Biden says the economy is stronger than ever and people have more money in their pockets and prices have went down.
    Just keep on voting for Communist Democrats all you stupid commie Democrat supporters..

    • Looks like a bad cut and paste job where some of the Fani Willis stuff got included in here by accident…they need to tighten up on the proofreading end of things.

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