US BANK STOCKS SINK AFTER NEW YORK COMMUNITY BANCORP CUTS DIVIDEND
NEWS Desk Global
On Wednesday, stocks of regional U.S. banks experienced a significant decline, largely due to a 37% drop in the shares of New York Community Bancorp. This drop followed the company's decision to cut its dividend and its unexpected posting of a loss, reigniting concerns about the financial stability of similar lenders.
The KBW Regional Banking Index saw a nearly 4% decrease, marking its most substantial one-day decline since May 2 of the previous year. This downturn occurred after JPMorgan Chase's announcement of its acquisition of failed First Republic Bank. Notably, this marked the third bank collapse due to deposit runs in the past year, following Silicon Valley Bank and New York's Signature Bank.
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