New York Community Bancorp (NASDAQ:CTBI) shares plunged nearly 26% on Friday after it replaced its CEO, reported a fourth-quarter loss that was more than 10 times what it previously stated and said it found “material weaknesses” in internal controls related to a loan review.
The news spooked already jittery investors, with NYCB shares down 65% this year.
“NYCB looks like a bank that is out of control, and it seems likely that they will have to take even steeper charges for loan loss provisions,” said Octavio Marenzi, CEO of advisory and consulting firm Opimas LLC.
