New York Community Bancorp shares plummet as CEO exits amid loan woes

Must read

Shares of New York Community Bancorp plunged by double digits on Friday after the sudden exit of the regional bank’s longtime president and CEO. The departure coincides with the bank’s disclosure of “material weaknesses” related to loans.

Thomas Cangemi relinquished his leadership roles at the bank after 27 years, with Alessandro DiNello, who serves as its board’s executive chairman, succeeding him, the bank said in a statement late Thursday. The bank also said in a regulatory filing that it had discovered “material weaknesses” in loan controls and took a $2.4 billion charge.

After plummeting almost 30% at Friday’s start, shares of the Hicksville, N.Y.-based commercial real estate lender bank were lately down nearly 23%, and have lost more than half their value this year. 

The bank — a major lender to New York City apartment landlords — is not able to file its annual report with the Securities and Exchange Commission, and will have to amend its fourth-quarter results, it said in the Thursday notice to regulators. 

“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 loan review, resulting from ineffective oversight, risk assessment and monitoring activities,” the bank said in the filing.

The developments come after the company in January said it was stockpiling cash in the event of possible loan troubles. 

Kate Gibson

Kate Gibson is a reporter for CBS MoneyWatch in New York.

Thanks for reading CBS NEWS.

Create your free account or log in

for more features.

Please enter email address to continue

Please enter valid email address to continue

More articles

Latest article