New York Community Bancorp's (NYCB) string of bad luck continues as its stock moves lower after reporting troubling earnings results and suffering a credit downgrade by Moody's. Nearly a year after 2023's regional banking crisis, what is NYCB signaling for the financial sector and commercial real estate?
Former Chair of the FDIC Sheila Bair highlights what another round of regional banking turmoil could look like and what the Biden administration and regulators should be watching closely.
"We saw... runs on uninsured deposits after we had the three failures last spring, even with the so-called systemic risk determination and the government saying they were going to protect uninsured, you still saw a run," Bair, who is also a senior fellow at the Center for Financial Stability and former Assistant Secretary for Financial Institutions of the US Treasury Department, tells Yahoo Finance. "So that instability... is still there, there's less reliance now among these mid-sized banks on uninsured. It's still significant, but I don't for the life of me understand why the Biden administration has not asked Congress to reinstate the FDIC's authority to provide temporary emergency expanded deposit guarantees."
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