{"id":11112,"date":"2024-03-05T08:24:41","date_gmt":"2024-03-05T02:54:41","guid":{"rendered":"https:\/\/bigbreakingwire.in\/nycb-and-the-cre-crunch-risks-across-10-banks-as-btfb-program-nears-end-amidst-commercial-real-estate-turmoil\/"},"modified":"2024-03-06T23:05:45","modified_gmt":"2024-03-06T17:35:45","slug":"nycb-and-the-cre-crunch-risks-across-10-banks-as-btfb-program-nears-end-amidst-commercial-real-estate-turmoil","status":"publish","type":"post","link":"https:\/\/bigbreakingwire.in\/nycb-and-the-cre-crunch-risks-across-10-banks-as-btfb-program-nears-end-amidst-commercial-real-estate-turmoil\/","title":{"rendered":"NYCB and the CRE Crunch: Risks Across 10 Banks as BTFB Program Nears End Amidst Commercial Real Estate Turmoil"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>AI stocks continue their meteoric rise, contributing trillions in value, while regional bank stocks face a stark contrast, experiencing a casual collapse. New York Community Bank (NYCB), which acquired the beleaguered Signature Bank, suffered a staggering 23% drop today, marking its lowest point since 1996. Despite boasting over $100 billion in assets and an extensive branch network across the US, the bank&#8217;s fortunes tumbled following an unexpected $260 million Q4 loss. To compound the crisis, NYCB slashed its dividend by a substantial 70%, exacerbating concerns among investors.<br \/><br \/>Further intensifying the turmoil, the bank recently disclosed the identification of &#8220;material weakness&#8221; in its controls, casting shadows on its operational stability. This revelation translated into a massive $2.4 billion loss for shareholders in the last quarter alone. Adding to the precarious situation, the imminent expiration of the Bank Term Funding Program in a week looms large. This emergency loan initiative, established by the Federal Reserve during the regional bank crisis, provided a financial lifeline. With the program&#8217;s end in sight, NYCB faces heightened uncertainty and potential challenges in navigating the turbulent financial landscape.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">\ud83d\udea8 Federal Reserve has raised interest rates on its Bank Term Funding Program for regional banks, effective immediately. The program, with a record $162 billion in loans, is set to end on March 11th.<br><br>Live Update <a href=\"https:\/\/t.co\/l4hswUWWV1\" target=\"_blank\">https:\/\/t.co\/l4hswUWWV1<\/a> <a href=\"https:\/\/t.co\/OLb1vqVJga\" target=\"_blank\">pic.twitter.com\/OLb1vqVJga<\/a><\/p>&mdash; BigBreakingWire (@BigBreakingWire) <a href=\"https:\/\/twitter.com\/BigBreakingWire\/status\/1750356241296351653?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">January 25, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Barrons and Bloomberg underscore potential vulnerabilities in the face of a Commercial Real Estate (CRE) market downturn, pointing to 10 banks with exposure: $VLY, $COLB, $OZK, $SFNC, $WAFD, $AX, $INDB, $MBIN, $SFBS, $DCOM. JPMorgan Chase&#8217;s Jamie Dimon issues a cautionary note, highlighting the adverse impact of rising rates during a recession on real estate.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"852\" data-attachment-id=\"11110\" data-permalink=\"https:\/\/bigbreakingwire.in\/nycb-and-the-cre-crunch-risks-across-10-banks-as-btfb-program-nears-end-amidst-commercial-real-estate-turmoil\/img_20240305_0819472188938375860393730\/\" data-orig-file=\"https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/03\/img_20240305_0819472188938375860393730.jpg\" data-orig-size=\"1658,1380\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"img_20240305_0819472188938375860393730\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/03\/img_20240305_0819472188938375860393730-300x250.jpg\" data-large-file=\"https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/03\/img_20240305_0819472188938375860393730-1024x852.jpg\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" src=\"https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/03\/img_20240305_0819472188938375860393730-1024x852.jpg\" alt=\"\" class=\"wp-image-11110\" title=\"\" srcset=\"https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/03\/img_20240305_0819472188938375860393730-1024x852.jpg 1024w, https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/03\/img_20240305_0819472188938375860393730-300x250.jpg 300w, https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/03\/img_20240305_0819472188938375860393730-768x639.jpg 768w, https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/03\/img_20240305_0819472188938375860393730-1536x1278.jpg 1536w, https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/03\/img_20240305_0819472188938375860393730-150x125.jpg 150w, https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/03\/img_20240305_0819472188938375860393730.jpg 1658w\" \/><\/figure>\n\n\n\n<p>The Mortgage Bankers Association reveals that $929 billion of the $4.7 trillion outstanding commercial mortgages will mature this year, intensifying concerns. Commercial real estate, already grappling with a substantial 40% decline, adds another layer of uncertainty.<br \/><br \/>Notably, major banks, including JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley, see their average reserves diminish from $1.60 to 90 cents for every dollar of commercial real estate debt for borrowers at least 30 days late, as reported by FT. This underscores a heightened risk scenario and the need for strategic responses in the financial sector to navigate the challenges posed by the evolving CRE landscape.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-bigbreakingwire wp-block-embed-bigbreakingwire\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"DUaerYxvXp\"><a href=\"https:\/\/bigbreakingwire.in\/moodys-downgrades-nycb-and-flagstar-bancorp-navigating-challenges-and-stabilizing-operations\/\">Moody&#8217;s Downgrades NYCB and Flagstar Bancorp: Navigating Challenges and Stabilizing Operations<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;Moody&#8217;s Downgrades NYCB and Flagstar Bancorp: Navigating Challenges and Stabilizing Operations&#8221; &#8212; BigBreakingWire\" src=\"https:\/\/bigbreakingwire.in\/moodys-downgrades-nycb-and-flagstar-bancorp-navigating-challenges-and-stabilizing-operations\/embed\/#?secret=Lf5e0jsj01#?secret=DUaerYxvXp\" data-secret=\"DUaerYxvXp\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>AI stocks continue their meteoric rise, contributing trillions in value, while regional bank stocks face a stark contrast, experiencing a casual collapse. New York Community&#8230;<\/p>\n","protected":false},"author":1,"featured_media":11114,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[65,618,31,29,619,39],"tags":[74,2006,2004,2011,2005,2007,1167,2010,2008,1779,2009,1871],"class_list":["post-11112","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bigbreakingnow","category-brokerage-reports","category-business","category-finance","category-stocks-in-news","category-world","tag-banking-crisis","tag-btfb-program","tag-commercial-real-estate","tag-economic-warning","tag-financial-stability","tag-jamie-dimon","tag-jpmorgan-chase","tag-major-banks","tag-mortgage-bankers-association","tag-nycb","tag-real-estate-downturn","tag-risk-assessment","entry","rows"],"jetpack_publicize_connections":[],"modified_by":null,"jetpack_featured_media_url":"https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/03\/IMG_20240305_081947-1.jpg","jetpack_shortlink":"https:\/\/wp.me\/pfgCxS-2Te","jetpack_sharing_enabled":true,"jetpack_likes_enabled":false,"_links":{"self":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts\/11112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/comments?post=11112"}],"version-history":[{"count":0,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts\/11112\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/media\/11114"}],"wp:attachment":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/media?parent=11112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/categories?post=11112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/tags?post=11112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}