From Investing.com:

Regional U.S. bank stocks sank after New York Community Bancorp’s shares plunged 37% following a dividend cut and surprise loss, reawakening concerns over the health of similar lenders. Deposits have stabilized, but concerns lingered over the impact on net interest income. The Federal Reserve’s decision to leave interest rates unchanged further amplified investor jitters.

New York Community Bancorp’s balance sheet crossed a $100 billion regulatory threshold, leading to a 70% dividend cut and a need to shore up its capital. Its adjusted loss of $185 million was attributed to a $552 million provision for credit losses, mainly for its commercial real estate portfolio affected by pandemic office vacancies.

Other banks just below the $100 billion threshold also saw their shares fall as analysts and investors were caught off guard by NYCB’s problems. However, the sell-off appeared to be idiosyncratic to NYCB’s balance sheet, and traders were positioned with a bullish bias for the regional bank exchange traded fund before Wednesday’s gloomy outlook.



Read more: US bank stocks sink after New York Community Bancorp cuts dividend By Reuters