(Reuters) -Embattled lender New York Community Bancorp is seeking cash infusion and gauging investor interest in its stock, a person familiar with the matter told Reuters on Wednesday.
Shares of the bank tumbled nearly 32% amid multiple trading halts for volatility. NYCB did not immediately respond to a Reuters request for comment.
NYCB has been under pressure since it posted a surprise fourth-quarter loss on Jan. 31, due to higher provisions tied to its exposure to the beleaguered commercial real estate (CRE) sector, and cut its dividend. It has pledged to reduce its exposure to CRE.
Last week, the bank also disclosed it had identified “material weaknesses” in internal controls tied to its review of loans.
The weaknesses were related to “ineffective oversight, risk assessment and monitoring activities”, but it would not impact its financial results for fiscal 2023, the bank had…
