Why New York Community Bancorp Stock Plummeted Today
Not for the first time this young year, troubled lender New York Community Bancorp (NYSE: NYCB) had a lousy day on the stock market Tuesday. The company's shares lost 22% of their value, plunging to a more than 25-year low. This was on a day when the S&P 500 index landed in positive territory, creeping up at a 0.2% pace.
The latest blow to New York Community Bancorp came after hours on Monday. A Bloomberg report said the bank's surprise dividend cut and sharply higher provisioning it showed in its fourth quarter were directly influenced by pressure from a federal regulator.
Citing unidentified "people with direct knowledge of the matter," Bloomberg said that New York Community Bancorp executives had held "behind-the-scenes conversations" with officials at the government's Office of the Comptroller of the Currency (OCC), which is the branch of the Department of the Treasury tasked with supervising the nation's banks and federal savings associations.
Source Fool.com
