HERE WE GO: Moody’s Downgrades New York Community Bank to Junk After Stock Plummets Amid Losses on Commercial Mortgages
Another regional bank is in trouble.
Moody’s Investors Service downgraded a Long Island lender, New York Community Bank – NYCB (NYSE), to junk citing “multi-faceted financial, risk management and governance challenges” after its stock plummeted amid losses on commercial mortgages.
“It downgraded all the bank’s long-term ratings to Ba2 from Baa3, which is junk status, partly on concerns about turnover of the firm’s risk management leaders, and warned the assessments remain on review for further downgrade.” CNBC reported.
“The downgrade reflects Moody’s views that NYCB faces high governance risks from its transition with regards to the leadership of its second and third lines of defense, the risk and audit functions of the bank,
