On February 5th, sources familiar with the matter revealed that increasing pressure from the highest regulatory agency in the United States has led to an unexpected decision by New York Community Bank to reduce dividends and increase loan loss provisions to prevent unforeseen events in commercial real estate loans.
It is reported that after a behind the scenes conversation with officials from the Office of the Comptroller of the Currency (OCC), the New York Community Bank introduced the aforementioned drastic financial measures, causing the company's stock price to experience a record sharp drop and dragging down the entire industry's stock price last week. (Bloomberg)