New York Community Bancorp (NYCB) is raising more than $1 billion from investors and shaking up its leadership team in an attempt to ease fears about its ability to stay afloat.
NYCB has been the subject of renewed anxiety about community bank stability, as it has racked up substantial real-estate loan losses and revealed "material weaknesses" in its internal controls. This uncertainty has led to significant volatility in the bank's share price. The $1 billion investment is intended to shore up the bank's financial position and stem the losses it has faced from its real-estate loan profile.
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