|
The
bank said the cuts amount to 8% of its head count. It's also
selling its mortgage-servicing business to mortgage company Mr.
Cooper, which will mean trimming another 1,200 employees from
its payroll. Most of those employees will be offered the chance
to transfer to Mr. Cooper, NYCB said.
Shares of Hicksville, New York-based NYCB fell 1.6% to close
Friday at $12.18.
NYCB got a lifeline of more than $1 billion from a group of
investors in March of this year its stock plunge by more than
80%.
The bank has been hammered by weakness in commercial real estate
and growing pains resulting from its buyout of a distressed
bank.
That cash infusion brought four new directors to NYCB’s board,
including Steven Mnuchin, who served as U.S. Treasury secretary
under President Donald Trump. Joseph Otting, a former
comptroller of the currency, became the bank’s CEO.
Under the deal, NYCB was to get investments of $450 million from
Mnuchin’s Liberty Strategic Capital, $250 million from Hudson
Bay Capital and $200 million from Reverence Capital Partners.
Cash from other institutional investors and some of the bank’s
management took the total over $1 billion, the bank said in
March.
NYCB was a relatively unknown bank until last year, when it
bought the assets of Signature Bank at auction on March 19 for
$2.7 billion. Signature was one of the banks that crumbled in
last year’s mini-crisis for the industry, where a bank run also
sped the collapse of Silicon Valley Bank.
The sudden increase in size for NYCB meant it had to face
increased regulatory scrutiny. That’s been one of the challenges
for the bank, which is trying to reassure depositors and
investors that it can digest the purchase of Signature Bank
while dealing with a struggling real-estate portfolio. Losses in
loans tied to commercial real estate forced it to report a
surprise loss for its latest quarter, which raised investors’
concern about the bank.
All contents © copyright 2024 Associated Press. All rights reserved
|
|
