NYCB Stock Halted for Volatility After Plummeting Over 60% in 2024: What's Going On?
Investors in embattled New York Community Bancorp (NYCB) experienced a rollercoaster on Wednesday as shares plummeted dramatically. Trading of New York Community Bank (NYCB) stock resumed after being halted on the New York Stock Exchange on Wednesday following a dramatic plunge.
Why is NYCB Stock So Volatile?
New York Community Bancorp (NYCB) is scrambling to reassure investors about its deposits, liquidity, and governance following a weeklong plunge in the company’s stock. The bank's 30-day implied volatility - or how much traders expect the bank's shares to swing in the near term - rose to 170%, the highest in at least four years, according to Trade Alert.
Trading of New York Community Bank (NYCB) closed at $3.22 Tuesday, a 69 percent fall from the $10.38 share price the stock traded at prior to a Jan. 31 earnings call. So, it’s no wonder why more people are questioning whether New York Community Bancorp will meet the same fate after the stock shed 60% of its value over the course of 2024.
What Happened With NYCB? Understanding the Factors Behind the Decline
What Happened With NYCB? The troubles NYCB has run into extend beyond just some unanticipated losses related to CRE loans. Going forward in 2025, many banks that are exposed to commercial real estate loans could face similar challenges. The initial downturn was triggered by concerns about the bank's exposure to commercial real estate (CRE) loans and subsequent increase in its loan-loss provisions.