An ailing New York bank just announced an injection of $1 billion in capital in a push to stay afloat.

New York Community Bank says the infusion was led by former U.S. Treasury Secretary Steven Mnuchin’s Liberty Strategic Capital, as well as Hudson Bay and Reverence Capital.

In a press release, Mnuchin says he believes the investment will stabilize the $113.9 billion bank, which revealed a loss of $2.4 billion to the public last week.

“In evaluating this investment, we were mindful of the bank’s credit risk profile.

With the over $1 billion of capital invested in the bank, we believe we now have sufficient capital should reserves need to be increased in the future to be consistent with or above the coverage ratio of NYCB’s large bank peers.”

NYCB is struggling with its exposure to the commercial real estate market amid sustained rate hikes from the Fed. It’s also feeling the weight of several acquisitions including a big portion of Signature Bank, which collapsed last year.

The bank fired and replaced its CEO last week – and has done this once again today.

The new, new CEO will be former Comptroller of the Currency, Joseph Otting.

“We are delighted that former Comptroller Otting will be NYCB’s new CEO and believe that the actions taken by NYCB establish a strong foundation for future growth through our new relationship with other new Board members and investors.

We are confident that NYCB is poised to generate sustainable shareholder value.”

NYCB’s stock has cratered this year, dropping about 50% in January and February, then 25% last week, 26% on Monday and as much as 47% today, when trading was frozen pending the liquidity announcement.

That announcement and subsequent unfreezing of the stock triggered an immediate surge from $1.76 to $3.46, representing a 96% jump.

The stock remains well below its January 1st, 2024 price of $10.41.

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The post Troubled New York Bank Receiving $1,000,000,000 Liquidity Injection in Push to Save Ailing Lender appeared first on The Daily Hodl.