NY Community Bancorp's stock plunges nearly 30% as CEO exits, bank admits weaknesses in loan oversight

Published

1 year ago

March 5, 2024

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New York Community Bancorp sent its shares plummeting 26% on Friday after the regional lender said has discovered “material weaknesses” in the ways it tracks loan risks and that its CEO is leaving.

The New York-based firm announced late Thursday that CEO Thomas Cangemi would be leaving NYCB — capping off a 27-year tenure at NYCB — and that Alessandro DiNello would take his place, effective immediately.

DiNello, NYCB’s executive chairman, had been acting as the bank’s true boss since earlier this month, according to Yahoo Finance. In the weeks leading up to his departure, Cangemi had been reporting to DiNello, even changing its bylaws to make it happen.

One NYCB director, Hanif “Wally” Dahya, said in a Feb. 25 letter that he “did not support the proposed appointment” of DiNello as CEO without saying why, according to Yahoo.

Dahya, who had been presiding director, also resigned from the board on Thursday.

He was replaced by Marshall Lux, who initially joined NYCB’s board in early 2022, works as a senior partner at Boston Consulting Group, and previously served as global chief risk officer for Chase Consumer Bank at JP Morgan from 2007 to 2009, according to a press release on the leadership changes.

Separately on Thursday, the bank — among the top 30 in the US — amended its fourth-quarter losses from $252 million to $2.7 billion and divulged “internal control issues.”

As part of managements assessment of the Companys internal controls, management identified material weaknesses in the Companys internal controls related to internal loan review, resulting from ineffective oversight, risk assessment, and monitoring activities, the company said in a filing with the Securities and Exchange Commission.

DiNello insisted in the release that despite NYCB’s “recent challenges, we are confident in the direction of our bank and our ability to deliver for our customers, employees, and shareholders in the long term.”

“The changes were making to our board and leadership team are reflective of a new chapter that is underway, added.

Representatives for NYCB did not immediately respond to The Post’s request for comment.

The shakeup at NYCB is just the latest twist in a month-long saga that began in late January when the company — a major lender to New York apartment landlords — surprised analysts by slashing its dividend to stockpile more cash for loan losses.

The announcement reignited concerns about the commercial real estate market which, in New York City, has been struggling over the so-called urban doom loop caused by an influx of working from home during the pandemic — a trend that has stuck despite return-to-office mandates.

There have also been worries about the status of regional banks after three high-profile lenders suddenly collapsed last year: Silicon Valley Bank, Signature Bank, and First Republic Bank.

NYCB acquired failed Signature in a $2.7 billion deal in March 2023.

Shares of NYCB closed at $3.55, its lowest level since 1997. The stock is down 65% year to date.

Technology

British fintech Revolut tops $1 billion in profit as revenue jumps 72%

Published

5 hours ago

April 24, 2025

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British fintech Revolut tops billion in profit as revenue jumps 72%

Revolut CEO Nikolay Storonsky at the Web Summit in Lisbon, Portugal, Nov. 7, 2019.

Pedro Nunes | Reuters

LONDON — British fintech firm Revolut on Thursday announced it topped $1 billion in annual profit for the first time, a major milestone for the company as it readies the launch of its U.K. bank later this year.

Revolut, which offers a range of banking and financial services via an app, said that net profit for the year ending Dec. 31, 2024, totaled £1.1 billion ($1.5 billion), up 149% year over year. Revenues at the company increased 72% year on year to £3.1 billion, driven by growth across different revenue streams.

Revolut’s wealth unit — which includes its stock-trading business — saw outsized growth, with revenue surging 298% to £506 million, while subscriptions turnover jumped 74% to £423 million.

Revolut also saw significant growth in its loan book, which grew 86% to £979 million. Coupled with a jump in customer deposits, this contributed to a 58% increase in interest income, which totaled £790 million.

UK bank rollout

Revolut’s financial milestone arrives at a critical time for the almost decade-old-firm. The digital banking unicorn has been preparing a transition to becoming a fully operational bank in the U.K. after securing a banking license last summer.

It was granted a banking license with restrictions in July 2024 from the U.K.’s Prudential Regulation Authority, bringing an end to a lengthy application process that began back in 2021.

The restricted license means that Revolut is now in the “mobilization” stage, where it is focusing on building out its banking operations and infrastructure in the run-up to a full launch. The period typically lasts about 12 months.

Revolut is still awaiting approval from regulators to transfer all 11 million of its U.K. users to a new banking entity this summer. Once fully up and running, the firm will be able to begin offering loans, overdrafts and mortgages, opening up the path to new income streams.

‘Customers trust banks’

Victor Stinga, Revolut’s chief financial officer, told CNBC on Thursday that the company’s aim is to formally launch its U.K. bank later this year.

“As you can imagine, at this scale, it’s a thorough process, and we just pay a lot of attention to it,” Stinga said. “We work very closely on a close contact with the PRA [Prudential Regulation Authority] and the FCA [Financial Conduct Authority] on it. We feel like we’re making great progress on it.”

Stinga said that a big advantage of becoming a bank in the U.K. is ability to start accepting deposits protected by government guarantees. Licensed banks are covered by the Financial Services Compensation Scheme, which means their customers can claim up to £85,000 if a lender goes out of business.

“Customers trust banks, so it means customers on this transition will use Revolut as a primary bank account,” Stinga said.

Lending is arguably “the biggest roadmap item that this unlocks,” Revolut’s CFO said, adding that the firm is looking at launching credit cards and personal loans, similar to the products it already offers in the European Union under a separate EU banking license.

Francesca Carlesi, Revolut’s U.K. boss, previously told the Wall Street Journal that Revolut views its journey to becoming a U.K. bank as a crucial step in its global expansion and eventual IPO. “My main strategic focus is making Revolut the primary bank for everybody in the U.K.,” she told the WSJ.

It has a steep hill to climb — rivals Monzo and Starling have had a lengthy head start on Revolut. Monzo obtained its full banking license in 2017, while Starling was granted its own permit in 2016.

Entertainment

The Magic Circle’s first female member fooled them into believing she was a man – how did she do it?

Published

8 hours ago

April 24, 2025

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The Magic Circle's first female member fooled them into believing she was a man - how did she do it?

How did one woman fool the most famous magic society on the planet?

Back in 1991, Sophie Lloyd pulled off the ultimate illusion, tricking the Magic Circle into thinking she was a man.

But over 30 years after being unceremoniously kicked out, the Circle has tracked down the former actress to apologise and reinstate her membership.

She told Sky News how returning feels like the society has “made good on something that was wrong”.

How did she infiltrate that exclusive group that nowadays counts the likes of David Copperfield and Dynamo as members?

In March of that year, she took her entry exam posing as a teenage boy, creating an alter-ego called Raymond Lloyd.

“I’d played a boy before,” she explained, but “it took months of preparation” to secretly infiltrate the Circle’s ranks half a year before it would officially vote to let women in.

“Really, going back 30 years, men’s clubs were like, you know, just something you accepted.”

The men-only rule had been in place since the Circle was formed in 1905. The thinking behind it being that women just couldn’t keep secrets.

Aware of the frustration of female magicians at the time, Lloyd felt she was up for the challenge of proving women could be as good at magic as the men.

The idea was, in fact, born out of a double act, thought up by a successful magician called Jenny Winstanley who’d wanted to join herself but wasn’t allowed.

She recognised the hoax would probably only work with a much younger woman posing as a teenage boy, and met Lloyd through an acting class.

Lloyd said: “We had to have a wig made… the main thing was my face, I had plumpers made on a brace to bring his jawline down.”

To hide her feminine hands, she did the magic in gloves, which she says “was so hard to do, especially sleight of hand.”

The biggest test came when she was invited for a drink with her examiner, where she had to fake having laryngitis.

“After the exam, which was 20 minutes, he invited Jenny and I – she played my manager – and I sat there for one hour and three quarters and had to say ‘sorry, I’ve got a bad voice’.”

Raymond Lloyd passed the test, and his membership certificate was sent through to Sophie.

Then, in October of the same year, when whispers started circulating that the society was going to open its membership to both sexes, she and Jenny decided to reveal all. It didn’t go down well.

Rather than praise her performance, members were incandescent about the deception and, somewhat ironically, Raymond Lloyd was kicked out just before women members were let in.

Lloyd said: “We got a letter… Jenny was hurt… she was snubbed by people she actually knew, that was hurtful. However, things have really changed now…”

Three decades later the Magic Circle put out a nationwide appeal stating they wanted to apologise and Lloyd was recently tracked down in Spain.

While Jenny Winstanley died 20 years ago in a car crash, as well as Sophie receiving her certificate on Thursday, her mentor’s contribution to magic is being recognised at the special show that’s being held in both their honour at the Magic Circle.

Lloyd says: “Jenny was a wonderful, passionate person. She would have loved to be here. It’s for her really.”

Sports

Avs welcome back captain Landeskog after 3 years

Published

8 hours ago

April 24, 2025

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Avs welcome back captain Landeskog after 3 years

ESPN News Services

Apr 23, 2025, 03:51 PM ET

DENVER — Colorado Avalanche captain Gabriel Landeskog took the ice in his first NHL game in nearly three years Wednesday night against the Dallas Stars.

It marked his first NHL appearance since June 26, 2022, when he and the Avalanche beat Tampa Bay to win the Stanley Cup. He had been sidelined because of a chronically injured right knee.

The Avalanche posted a video of Landeskog driving to Ball Arena, which he concluded, “Hey Avs Faithful, it’s Gabe here, just wanted to shoot you guys a quick message — thank you guys for all the support over the last few years and I’ll see you tonight.”

The Cap has a message for you, Avs Faithful.#GoAvsGo | #BuiltDifferent pic.twitter.com/dhoTqrflZo

— x – Colorado Avalanche (@Avalanche) April 24, 2025

It’s his first game with the Avalanche in 1,032 days. He becomes the fifth player in NHL history — among those with a minimum of 700 games played — to return to his team after 1,000 or more days without a contest, according to NHL Stats. The last one to do so was longtime Avalanche forward and Hall of Famer Peter Forsberg.

“I feel surprisingly calm and in control right now. I know the butterflies and the nerves will come, I’m sure,” he said during a pregame interview. “I found myself thinking about this moment a lot over the last three years. And now that it’s here, it’s the reverse — I’m thinking a lot about the hard work that’s gone into it, some of the ups, a lot of the downs, sacrifices and support I’ve had along the way.

“Thankful for everybody and all their support, but now it’s go time so I’m excited to get out there.”

The first-round series with Dallas is tied at 1-1.

Landeskog’s presence on the ice provided a big boost not only for his teammates but also for the capacity crowd. His No. 92 sweater is a frequent sight around the arena.

The crowd chanted “Landy, Landy” as he led the Avalanche on the ice for pregame warmups. The chants continued during player introductions. Later, a video chronicling Landeskog’s three-year journey back was shown on the arena scoreboard.

“Everyone is rooting for him. It’s a great comeback story,” Avs coach Jared Bednar said after morning skate. “I trust in Gabe’s preparation, and what I’m seeing with my own eyes that he’s getting close and ready to play. I think he feels really good about where he’s at.

“Adding him back into our locker room, he’s almost an extension of the coaching staff, but he’s still one of the guys and the guy that everyone looks up to. You can’t get enough of that this time of the year.”

Landeskog’s injury dates to the 2020 “bubble” season when he was accidentally sliced above the knee by the skate of teammate Cale Makar in a playoff game against Dallas. Landeskog eventually underwent a cartilage transplant procedure on May 10, 2023, and has been on long-term injured reserve.

He was activated Monday before Game 2 in Dallas and skated in pregame warmups but didn’t play.

Stars forward Matt Duchene was teammates with Landeskog and they remain good friends.

“We’ve been rooting for him to come back,” said Duchene, who was the No. 3 pick by Colorado in 2009. “Obviously, it makes our job harder having a guy like that out there, but on the friends side, the human side and the fellow athlete side, I think everyone’s happy to see the progress he’s made. … I’m just really happy that he’s gotten to this point.”

It doesn’t mean the Stars will take it easy on Landeskog.

“It’s remarkable he’s coming back, if he’s coming back, as a friend,” said longtime teammate Mikko Rantanen, a 2015 first-round pick by Colorado before being traded in January to Carolina and on to Dallas in March. “As an opponent, obviously, no mercy.”

The 32-year-old Landeskog recently went through a two-game conditioning stint with the American Hockey League’s Colorado Eagles. He practiced with the Avalanche leading up to their playoff opener.

The Associated Press contributed to this report.