NY Community Bank Recovers After Dip

Posted on 03/07/2024

New York Community Bank announced new leadership and a US$ 1 billion cash infusion from former Treasury Secretary Steven Mnuchin. The stock was on its way to halving when the announcement came, bringing the embattled bank’s shares up to its previous price in the US$ 3 range. Money will come from Mnuchin’s Liberty Strategic Capital, Hudson Bay Capital, Reverence Capital Partners, and Citadel Global Equities. Former Comptroller of the Currency Joseph Otting will become the bank’s CEO. Otting was president, CEO, and a board member of OneWest Bank, N.A. At OneWest, he worked closely with the bank’s founder, Steven Mnuchin.

Prior to becoming Comptroller of the Currency, Otting was an executive in the banking industry. He served as President of CIT Bank and Co-President of CIT Group from August 2015 to December 2015. He previously was President, Chief Executive Officer, and a member of the Board of Directors of OneWest Bank, N.A. Prior to joining OneWest Bank, he served as Vice Chairman of U.S. Bancorp, where he managed the Commercial Banking Group and served on the Bancorp’s executive management committee. He also served as a member of U.S. Bank’s main subsidiary banks’ Board of Directors.

Liberty Strategic Capital is expected to invest US$ 450 million, Hudson Bay will invest US$ 250 million, and Reverence will invest US$ 200 million as part of the transaction.

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