NYCB falls Bitcoin rises
New York Community Bank's stock price is at its lowest level since 1997, the Covesey Letter reports.
"Weakness.
Another U. S. bank falls amid #bitcoin gains.
New York Community Bank's ($NYCB) share price has fallen 20% to its lowest level in 27 years due to internal control problems.
Contrary to speculation, #cryptocurrencies were not the cause of the bank's closure; NYDFS supervisors will confirm this in April 2024.
The cause of Signature Bank's collapse was inadequate supervision and risk assessment. The bank had a high proportion of uninsured deposits linked to cryptocurrencies.
New York Community Bank's (NYCB) share price fell more than 20% to a 27-year low after reports of internal control problems.
While NYCB's stock price has plummeted, bitcoin is nearing record highs.
The Kobeissi Letter reported that New York Community Bank's share price hit its lowest level since 1997.
The weaknesses are reportedly related to loan reviews as a result of ineffective supervision and risk assessment.
NYCB previously acquired Signature Bank, which collapsed during the regional banking crisis in March 2023.
Many speculated that cryptocurrencies may have been the cause, given its pro-cryptocurrency stance, but the bank confirmed this was not the case; in April 2024, NYDFS Commissioner Adrienne Harris confirmed that cryptocurrencies were not the reason for the bank's closure.
Federal regulators shut down Signature Bank due to systemic risk issues. However, the mainstream media blamed cryptocurrencies for its collapse. Harris described the events leading up to the bank's collapse as follows.
"A groundbreaking banking fiasco.
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