Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Got Bitcoin? Another US Bank Shows Signs of Weakness After Acquiring Signature

Got Bitcoin? Another US Bank Shows Signs of Weakness After Acquiring Signature

CryptopotatoCryptopotato2024/03/02 15:29
By:Andrew ThrouvalasMore posts by this author

NYCB’s stock is crashing following a disastrous Q4 earnings report and multiple executive departures.

Worrying developments at New York Community Bancorp (NYCB) have several Bitcoin investors anticipating a renewed U.S. banking crisis – which could bring money crashing back into the digital currency.

The bank’s stock is down 41% over the past month, including a 28% plunge on Friday. Trading for $3.55 at writing time, it has now reached its lowest share price since 1996.

What’s Happening at NYCB?

NYCB had already suffered major losses in early February after disclosing that CEO Thomas Cangemi had stepped down. Executive chairman Alessandro DiNello has effectively been the bank’s new boss since Feb 6.

In a letter on February 25, NYCB director Hanif “Wally” Dahya said he “did not support the proposed appointment” of DiNello as CEO. Dahya also resigned from the board.

The most recent development came late Thursday when the bank revealed that its previously disclosed $252 million fourth-quarter loss had been revised ten-fold up to $2.7 billion.

The extended loss was related to a $2.4 billion “goodwill” non-cash impairment charge related to transactions from several decades ago, which it said does not affect regulatory capital.

However, in a separate statement, the bank’s management said it had identified “material weaknesses in internal controls” resulting from “ineffective oversight, risk assessment and monitoring activities.”

On Friday, NYCB tried to calm investors with another announcement of a new chief risk officer and chief account executive to account for recent departures. Per a Bloomberg report , CEO DiNello added:

“The company has strong liquidity and a solid deposit base, and I am confident we will execute on our turnaround plan to deliver increased shareholder value.”

Banking Crisis 2.0?

NYCB was responsible for acquiring Signature Bank, a crypto-supportive firm that was forced to close in March 2023 after suffering a wave of withdrawals that afflicted regional banks across the country.

Other major crypto banks, including Silvergate Bank and Silicon Valley Bank , were also forced to shut down at the time. When the U.S. government opted to bail out depositors to the latter, Bitcoin’s price shot up from $19,000 to $30,000 in the following days.

“JAYPOW says US econ banks strong to very strong. NYCB says otherwise,” posted BitMEX co-founder Arthur Hayes to X on February 5. “The bailout is coming, $BTC = $1mm.”

You Might Also Like:

  • This German Banking Giant Will Offer Crypto Trading Services in 2024: Report
  • Nigerian Central Bank Lifts Ban Restricting Banks From Servicing Crypto Clients
  • Elizabeth Warren’s Bank-Endorsed Ban Crypto Bill an Attack on Tech and Privacy
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Cryptocurrency Analytics Company Releases Critical Price Levels for Bitcoin, Ethereum and Solana

Cryptocurrency analysis company CryptoQuant has evaluated the prices of Bitcoin, Ethereum and Solana. Here are their predictions.

Bitcoinsistemi2024/11/03 11:33

Big Whale Made a Mistake This Time: He Missed $1.6 Million in Profit on This Altcoin

According to Onchain data, a major crypto whale missed a huge profit opportunity in an altcoin. Here are the details.

Bitcoinsistemi2024/11/03 11:33

Analysis Company Revealed: “This Altcoin Dominates in Transaction Share”

According to the statement made by the cryptocurrency analysis company CryptoQuant, an altcoin has taken over the dominance.

Bitcoinsistemi2024/11/03 11:22