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Turmoil At New York Community Bancorp: Shares Tumble Over 20%, Regional Bank Investors Pull Back

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New York Community Bancorp (NYSE:NYCB) finds itself in the eye of the storm once again.

On Thursday, the bank publicly acknowledged a “material weakness” in its internal controls concerning loan review processes. This admission was accompanied by a major leadership change at the top, highlighting a period of upheaval for the company.

The bank cited “ineffective oversight, risk assessment, and monitoring activities” as the root of the issues and promised to outline a remediation plan in its forthcoming annual report to the U.S. Securities and Exchange Commission within the next 15 days.

Thomas R. Cangemi, the former CEO, stepped down immediately after 27 years at the helm of the bank but will continue to serve on the board. The bank has appointed Alessandro DiNello as the new President and CEO and Marshall Lux as the Presiding Director of the Board.

Following these announcements, New York Community’s shares plummeted by over 20% shortly after the market opened on Friday. …

Full story available on Benzinga.com

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