From CNBC:

Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin met after a House hearing on pandemic response. New York Community Bank received a $1 billion investment led by Mnuchin’s Liberty Strategic Capital, soothing concerns. Recent bank acquisitions have tapped millions in private equity, with advisors highlighting speed and discretion in deals.

Selling stock in public markets is not feasible for most banks seeking capital amid sensitive financial situations. Banks like NYCB, seeking discreet support, face intense speculation that can lead to stock losses. Mnuchin’s direct outreach to NYCB helped secure the $1 billion investment, providing the bank with time to address financial issues.



Read more: Why private equity has been involved in every recent bank deal