NEW YORK (dpa-AFX) – The badly battered securities of New York Community Bancorp rose significantly on Friday after it was announced that shares were being purchased by members of the financial institution’s board of directors and board of directors. They recently rose by almost 14 percent to $4.77. Looking at the chart, however, this is nothing more than another attempt at stabilization after the share price had collapsed by up to around 65 percent between last week and this Wednesday.
The background to the poor mood was the announcement of a significant dividend cut and an increase in risk provisions for commercial real estate loans at risk of default. The rating agency Moody’s then downgraded the bank’s bonds to “junk”, meaning they see greater risks than before.
On Wednesday, there was some confidence when the bank reported growth in deposits since the turn of the year and emphasized that it had plenty of liquid assets. Nevertheless, the development awakened memories for investors of the US regional banking crisis a good year ago.
At the end of the week, things went up after CEO Thomas Cangemi and insiders announced share purchases amounting to more than 200,000 shares. With such a step after a price collapse, managers often want to spread confidence./mis/he
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