United

Bank AI

April

Read

New York Community Bancorp (NYCB), which purchased the collapsed crypto-friendly Signature Bank in 2023, saw its share price plunge after reporting a $260 million loss in the fourth quarter of 2023 and reducing its dividend.&nbsp;
In March 2023, Signature Bank <a href="https://cointelegraph.com/news/signature-bank-closed-by-new-york-banking-authorities">officially closed down</a> and was taken over by the New York Department of Financial Services (NYDFS). A week after the collapse, the NYCB swooped in to buy the non-crypto deposits and loans of the failed bank.&nbsp;
On March 20, 2023, the United States Federal Deposit Insurance Corporation (FDIC) announced that Signature Bank’s 40 branches will <a href="https://cointelegraph.com/news/signature-bank-deposits-branches-sold-to-flagstar-crypto-not-included">operate as Flagstar Bank</a>, a wholly-owned subsidiary of the NYCB.
<blockquote class="twitter-tweet">
 Today, we entered into an agreement with a subsidiary of New York Community Bancorp, Inc., to purchase and assume deposits and assets out of Signature Bridge Bank. Read more ➡️ <a href="https://t.co/bSshY93lBh">https://t.co/bSshY93lBh</a>. <a href="https://t.co/b9RBvYtGF7">pic.twitter.com/b9RBvYtGF7</a>— FDIC (@FDICgov) <a href="https://twitter.com/FDICgov/status/1637595010643140609?ref_src=twsrc%5Etfw">March 19, 2023</a>
</blockquote> 
Following its acquisition of Signature Bank, NYCB stock rose to $9.19 on March 21, even reaching a high of $13.87 on July 31.&nbsp;NYCB president and CEO Thomas Cangemi <a href="https://s22.q4cdn.com/437978920/files/doc_earnings/2023/q4/earnings-result/NYCB-4Q2023-Earnings-Release.pdf" target="_blank" rel="noopener nofollow">said</a>&nbsp;the assets and liabilities of Signature Bank were “strategically and financially attractive.” The executive described buying Signature Bank as a “unique opportunity.” Cangemi added that it strengthened the bank’s balance sheet by “adding a significant amount of low-cost deposits and a middle-market business supported by over 130 private banking teams.”&nbsp;
However, a recent sell-off erased the stock’s gains from its Signature Bank acquisition. On Jan. 31, NYCB <a href="https://ir.mynycb.com/financial-information/quarterly-and-annual-reports/default.aspx" target="_blank" rel="noopener nofollow">released</a> its report for the last three months of 2023, revealing a $260 million loss in the quarter, down from a $164 million profit in the same period in 2022. Cangemi announced that it “took decisive actions to build capital,” including reducing its quarterly common dividend to $0.05 per share.&nbsp;&nbsp;
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-02/03376cfd-42c3-4336-90b1-571d2982811c.jpg" alt="" title="">
 <figcaption style="text-align: center;">
 NYCB shares dropped 40% after releasing its quarterly report. Source: TradingView&nbsp;
 </figcaption>
</figure>
Following the announcement, NYCB stock dropped from $10.37 to a low of $6.34 on Jan. 31 before slightly recovering to $7.12. At the time of writing, the stock price is at $6.49, according to stock analysis platform TradingView. 
Related: <a href="https://cointelegraph.com/news/u-s-home-loan-banks-lent-billions-of-dollars-to-crypto-banks-report">U.S. home-loan banks lent billions of dollars to crypto banks: Report</a>
In May 2023, FDIC chairman Martin Gruenberg said in a hearing that the Signature Bank collapse stemmed from its <a href="https://cointelegraph.com/news/signature-bank-failed-to-understand-risks-associated-with-crypto-fdic-chair">failure to understand risks</a> associated with crypto.&nbsp;However, other parties disagreed that the collapses had anything to do with crypto at all. On April 5, 2023, NYDFS superintendent Adrienne Harris said that the collapse of Signature Bank had nothing to do with its <a href="https://cointelegraph.com/news/ludicrous-idea-that-signature-bank-s-collapse-was-connected-to-crypto-says-nydfs-head">exposure to digital assets</a>.
In May 2023, U.S. Senator Cynthia Lummis lashed out at former Signature Bank executive Scott Shay&nbsp;for blaming the bank’s collapse on crypto.&nbsp;According to Lummis, the executive has been <a href="https://cointelegraph.com/news/signature-bank-blame-crypto-collapse-lummis-warren">deflecting blame onto digital assets</a> and hasn’t accepted any blame himself.
Magazine: <a href="https://cointelegraph.com/magazine/hong-kong-crypto-exchanges-do-kwon-jail-korean-crypto-lenders-contagion-asia-express/">Korean crypto contagion, Bank of China on Ethereum, HK’s exchange red carpet: Asia Express</a>

New York Community Bank plunges 40% after reporting $260M loss

Cointelegraph

Other articles published on Feb 1, 2024

Galxe and Kakao Games’ BORA Network Forge a Groundbreaking Alliance

U.S. department of energy initiates survey on crypto miners’ energy consumption

Binance faces challenges in re-entering UK amid partner concerns

Gold Rush Over? $25 Billion Bitcoin ETFs Outshine Precious Metal, Luring Investors

Analysts Predict a Significant Bitcoin (BTC) Pre-Halving Rally

How Bitcoin Revolutionizes Finance: An Expert’s Take; Kaspa and Borroe Finance on the Brink of Ma...

Join our free newsletter for daily crypto updates!