ReportWire

Tag: New York Community Bancorp

  • A top Delta executive is leaving weeks after the airline’s slow response to tech outage

    A top Delta executive is leaving weeks after the airline’s slow response to tech outage

    Delta Air Lines said Friday that its chief operating officer will leave the company next week after a little more than a year in the airline business to take another job.

    The departure of Michael Spanos comes a few weeks after Delta canceled thousands of flights during a botched recovery from a global technology outage,

    Spanos spent most of his career at PepsiCo and the Pepsi Bottling Group and was CEO of amusement-park operator Six Flags Entertainment before joining Delta in June 2023. He is one of three executive vice presidents of the Atlanta-based airline.

    In a regulatory filing, Delta gave no reason for Spanos’ departure — only that he would receive severance benefits that he is due under the company’s plan for officers and directors. Spanos received compensation valued at $8.6 million last year, mostly in stock awards.

    CEO Ed Bastian said in a note to employees that Spanos told him “earlier this summer” he was considering leaving Delta. A spokesperson said this happened before the technology outage.

    Bastian wrote that Spanos will move in September to another company, which he did not identify. The CEO credited Spanos with improving Delta’s performance, and added that Delta will not name a new chief operating officer.

    Chief operating officers typically run the day-to-day affairs of a company and report directly to the CEO. They are often considered the second-ranking executive, but at Delta, President Glen Hauenstein is generally seen as playing that role.

    Delta was hit harder than any other U.S. carrier by last month’s technology outage that started with a faulty upgrade from cybersecurity-software provider CrowdStrike to computers running on Microsoft Windows.

    Other airlines recovered within a couple days, but Delta canceled about 7,000 flights over five days as it struggled to reposition crews and match them with planes.

    The U.S. Transportation Department is investigating the meltdown, and Delta is pursuing $500 million in damages from CrowdStrike and Microsoft. The tech companies say Delta refused help and made misleading claims.

    Source link

  • UPDATE 3-NYCB closes $1 bln capital infusion deal, announces reverse stock split

    UPDATE 3-NYCB closes $1 bln capital infusion deal, announces reverse stock split

    (Adds details on fund raise in paragraph 8)

    March 11 (Reuters) – New York Community Bancorp said on Monday it had closed the $1 billion capital infusion deal that was agreed last week with an investor group and plans to submit one-for-three reverse stock split of its common stock to shareholders.

    Joseph Otting, former Comptroller of the Currency in the Donald Trump administration, was named NYCB’s chief executive last week as part of a $1 billion capital injection from a group of investors that included former U.S. Treasury Secretary Steven Mnuchin.

    The bank said on Monday it had added Otting, Mnuchin, Milton Berlinski and Allen Puwalski as the new directors of the board, while reducing the board strength to 10 members.

    Shares of NYCB rose 5.8% to $3.44 in extended trading on Monday.

    The lender said last week that it was seeing interest from non-bank bidders for some of its loans, and will outline a new business plan in April after the bank had slashed its dividend again and disclosed deposits fell 7%.

    A surprise quarterly loss and a 70% reduction of its dividend in January hammered NYCB’s stock, which came under pressure again in late February after it said it had found “material weakness” in internal controls and revised its loss to 10 times higher than earlier due to a goodwill impairment charge.

    Investment firms Hudson Bay Capital, Reverence Capital Partners, Citadel Global Equities, some institutional investors and certain members of NYCB’s management last week had agreed to participate in the equity investment.

    NYCB said it plans to raise the funds through stocks and warrants and investors will own about 39.6% of the company on a fully-diluted basis after the latest fund raising.

    Several Wall Street analysts have flagged concerns that the lender’s turnaround will likely take a long time as profits remain under pressure from its efforts to boost reserves for potential bad loans in its commercial real estate portfolio. (Reporting by Manya Saini and Nilutpal Timsina in Bengaluru; Editing by Shounak Dasgupta, Rashmi Aich and Sherry Jacob-Phillips)

    Source link

  • NYCB’s Credit Grade Is Cut to Junk by Moody’s

    NYCB’s Credit Grade Is Cut to Junk by Moody’s


    (Bloomberg) — New York Community Bancorp’s credit grade was cut to junk by Moody’s Investors Service less than a week after the regional lender said it was stockpiling reserves to cover souring loans tied to commercial real estate.

    Most Read from Bloomberg

    The rating company downgraded New York Community Bancorp’s long-term issuer rating by two levels to Ba2, citing unanticipated losses in its New York office and multifamily properties, pressure on earnings and a decline in its capitalization. The bank’s outlook remains under review, Moody’s said in a report released Tuesday.

    The downgrade comes after earnings last week that saw the bank slash its dividend and dramatically increase its provision for loan losses. Its stock has tumbled 59% since that day.

    The lender’s rating could be cut again if the bank’s credit performance weakens further, use of market funding expands in relation to deposit funding, it fails to strengthen its capitalization or it experiences a loss of depositor confidence that challenges the bank’s liquidity, the report said.

    New York Community Bancorp has swelled rapidly in the past 18 months through a pair of acquisitions, lifting total assets above the $100 billion threshold that brings more regulatory scrutiny. A key capital ratio for the bank is 9.1%, below peers such as KeyCorp and Regions Financial Corp. that are in that category.

    It may need to sell $4 billion to $6 billion of additional debt over time to meet new regional bank debt requirements, according to analysts led by Arnold Kakuda at Bloomberg Intelligence.

    The downgrade to junk might make any such sale more difficult, Kakuda has said.

    Companies cut to junk by two credit graders are known as “fallen angels” and have their debt moved to high-yield indexes, which can limit certain money managers from holding the securities.

    Most Read from Bloomberg Businessweek

    ©2024 Bloomberg L.P.



    Source link

  • Credit Suisse, UBS, First Republic, and More Stock Market Movers

    Credit Suisse, UBS, First Republic, and More Stock Market Movers

    This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

    https://www.barrons.com/articles/stock-market-movers-a86267f

    • Order Reprints
    • Print Article
    [ad_2]
    Source link