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NY Community Bancorp Flashes a $560 Billion Real Estate Warning for Banks
The US commercial real estate market has been in turmoil since the onset of the Covid-19 pandemic. But New York Community Bancorp delivered a reminder that some lenders are only just beginning to see the pain. The bank’s decisions to slash its dividend and stockpile reserves sent its stock down a record 38% and dragged the KBW Regional Banking Index to its worst day since the collapse of Silicon Valley Bank last March. At the root of the concern is the widespread knowledge that real estate values have tumbled, yet there’s difficulty predicting which specific loans might unravel. Setting that stage is a ... (full story)