Dealbook NYT by Andrew Ross Sorkin
This is a column that was emailed to me. There is no link.
I am chopping out one paragraph to limit how much I add here. But I have to add most of this because of its importance.
snippet
The sell-off in regional bank stocks looks set to worsen this morning, after Moody’s cut New York Community Bancorp’s credit rating to junk status.
Following snippet
N.Y.C.B.’s shares plunged as much as 15 percent in premarket trading after the downgrade, before rebounding. The stock has plummeted roughly 60 percent in the past week after the lender reported dismal results, especially stemming from its exposure to souring commercial real estate loans.
Last year, N.Y.C.B. won the bidding for assets tied to Signature Bank, which failed shortly after the demise of Silicon Valley Bank. That pushed its assets above $100 billion, putting it into a new regulatory category, and subjecting it to more stringent capital requirements.
Bank jitters are spreading. The KBW Nasdaq Regional Banking Index, a collection of midsize bank stocks, has fallen nearly 12 percent in the past week as investors worry about lenders’ exposure to commercial real estate loan portfolios.
My comments lending for rental apartment building construction is also at risk.