The bank announced on Wednesday, 6 March 2024 that former Whitehouse Comptroller of the Currency, Joseph Otting, is its new CEO. This appointment is part of a $1bn capital infusion from investors, which reportedly includes past Treasury Secretary Steven Mnuchin.

High interest rates and a problematic commercial real estate (CRE) market are some of the factors that hobbled NYCB’s financial performance. Based on a Reuters report, Otting and non-executive chairperson Alessandro DiNello informed analysts that they had inspected the bank’s financials.

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They said that NYCB would soon reveal a new business plan and give more information on deposits. Otting claimed that NYCB had a strong liquidity position and further commented:

I’ve spent a fair amount of time getting to know the organisation from afar and then a significant amount of time conducting due diligence on the portfolio and the balance sheet.

After Silicon Valley Bank and Signature Bank collapsed, NYCB has been struggling to curb the billions it lost in market value. At present, it has a $2.6bn market cap.

Although many believe that this capital injection will get NYCB back on track, others remain sceptical of the bank’s immediate recovery. Reuters quoted Wedbush analysts, who said:

While this deal provides a much-needed lifeline to NYCB, it is tremendously dilutive to common shareholders.