(Bloomberg) — New York Community Bancorp fell by double digits for the fourth time in five days, extending a rout caused last week by a surprise quarterly loss and an attempt to cut its dividend.
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The lender’s shares fell as much as 19% on Tuesday, hitting their lowest point since June 2000. The stock is now down more than 50% since its earnings release on January 31, wiping about $4 billion from its market capitalization disappeared.
Investors dumped the stock last week after stock analysts abandoned bullish calls and Moody’s Investors Service put the company’s credit rating under review for a downgrade. The bank’s shock announcement came as it braces for tougher regulation following deals that pushed its assets above $100 billion — most notably last year’s purchase of Signature Bank’s deposits and some of its loans — as well as potential weakness in the office and multi-family residential markets.
The latest slump comes after a report that the bank faced pressure from officials at the Office of the Comptroller of the Monet before deciding to cut its quarterly dividend and increase its provision for credit losses to more than 10 times what analysts expected.
Read more: NYCB’s talks with Watchdog led to moves that shook the market
Wedbush analyst David Chiaverini, who has the only sell-equivalent rating on the stock among analysts tracked by Bloomberg, downgraded the stock to underweight in November, citing a bleak outlook for New York’s rent-regulated multifamily housing loans.
On Tuesday, he said that while the pressures driving last week’s developments were not a surprise, the suddenness and scale of the changes were.