Stock Markets
New York Community Bancorp stock value set to halve as slump extends
© Reuters. FILE PHOTO: A screen displays the trading information for New York Community Bancorp on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 31, 2024. REUTERS/Brendan McDermid/File Photo
By Niket Nishant and Saqib Iqbal Ahmed
(Reuters) -Shares of New York Community Bancorp (NYSE:) dived another 14% on Tuesday, extending a sell-off since the lender reported a surprise quarterly loss last week and putting the stock on track to shed more than half of its value at the current levels.
The frenzied selling since Wednesday has also dragged down shares of peers on renewed fears about the health of the industry, which for months has been worried about exposure to the beleaguered commercial real estate (CRE) industry.
The bank last week set aside bigger-than-expected provisions for potential bad loans, chiefly due to its exposure to CRE where several borrowers are at risk due to high interest rates and low occupancies.
“There’s a lot of anecdotal evidence that it’s grim out there in CRE and indeed that may be getting even worse than folks are allowing people to know, at least in terms of office real estate,” said Russell Hackmann, founder of Hackmann Wealth Partners.
U.S. Treasury Secretary Janet Yellen also acknowledged CRE concerns on Tuesday, and said the Financial Stability Oversight Council, a body made up of multiple regulators, was focusing on it.
The KBW Regional Banking index dropped around 0.8% on Tuesday. The index has been hit even as analysts highlighted that the issues at NYCB were specific to its balance sheet.
The lender’s assets breached a $100 billion threshold after it purchased Signature Bank (OTC:) last year, subjecting it to stricter regulatory requirements and prompting a dividend cut to build capital.
The bank’s decision to slash its dividend came after mounting pressure from the Office of the Comptroller of the Currency (OCC), a top banking regulator, Bloomberg News reported on Monday.
The lender’s market value has fallen to about $3.5 billion since its earnings report, a far cry from its peak value of nearly $10 billion in August.
At least 13 brokerages have downgraded or lowered their price targets for the bank’s stock since the earnings report.
Fitch also downgraded the bank’s credit rating last week, citing the increased regulatory requirement that the agency said will curtail NYCB’s “flexibility” as it focuses on building capital.
The size of provisions the bank took were also “outside of Fitch’s baseline expectations,” the ratings agency said.
STIRS UP OPTIONS ACTIVITY
The slump in NYCB’s stock has kickstarted heightened activity in the options market. NYCB options were changing hands at 11 times their usual pace, according to Trade Alert data.
Put contracts, typically bought to express a bearish or defensive view, outnumbered calls, generally a bullish play, nearly 5-to-1, the data showed.
The bank’s 30-day implied volatility – or how much traders expect the bank’s shares to swing in the near term – rose to 170%, the highest in at least four years, Trade Alert said.
The broader Regional Banking exchange-traded fund (ETF) also drew heightened options activity, though at a more moderate level, suggesting that investors were more focused on the specific prospects of NYCB than on the broader regional banking sector.
The 30-day implied volatility for the ETF slipped to 33%, down about a point from the 3-month high touched on Wednesday, according to the data.
The plunge in NYCB’s stock has enriched short sellers, investors who profit from a slide in stock prices. Such investors have made roughly $159 million in paper profits on NYCB since it reported results, according to data from Ortex.
Stock Markets
ROSEN, TOP RANKED GLOBAL COUNSEL, Encourages Five9, Inc. Investors to Secure Counsel Before Important February 3 Deadline in Securities Class Action – FIVN
New York, New York–(Newsfile Corp. – January 26, 2025) – WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities, including call options, of Five9, Inc. (NASDAQ: NASDAQ:) between June 4, 2024 and August 8, 2024, both dates inclusive (the “Class Period”), of the important February 3, 2025 lead plaintiff deadline.
SO WHAT: If you purchased Five9 securities or call options during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Five9 class action, go to https://rosenlegal.com/submit-form/?case_id=32046 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than February 3, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action (WA:) Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Five9’s net new business was not “strong irrespective of the macro” and was, in fact, hampered by macroeconomic issues such as constrained and scrutinized customer budgets; (2) Five9 was in the midst of a challenging bookings quarter due, in part, to sales execution and efficiency issues, and Five9 was not “seeing very strong bookings momentum”; and (3) defendants did not have “enough information in terms of [their] existing customers that are going live” such that the statements that Five9 would see a positive inflection in its dollar-based retention rate lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Five9 class action, go to https://rosenlegal.com/submit-form/?case_id=32046 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook (NASDAQ:): https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
——————————-
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238378
(Reuters) – The acting head of the Federal Emergency Management Agency wrote to staff reassuring them that the agency’s continued existence was vital to the country’s disaster response efforts, after President Donald Trump said he wanted to overhaul or scrap it.
“FEMA is a critical agency which performs an essential mission in support of our national security,” said Cam Hamilton, a former Navy SEAL, who was appointed by Trump to temporarily lead the agency after the Republican president took office last week.
Hamilton sent the email to all staff on Friday night after earlier in the day Trump, during a visit to disaster areas in North Carolina and California, vowed to sign an executive order to overhaul or eliminate the main federal agency that responds to natural disasters.
“FEMA has turned out to be a disaster,” Trump said during a tour of a North Carolina neighborhood destroyed by September’s Hurricane Helene. “I think we recommend that FEMA go away.”
Trump accused FEMA of bungling emergency relief efforts there and said he preferred that states be given federal money to handle disasters themselves.
“President Trump has laid out his intent to reform FEMA, and we stand firmly at the ready to implement real and lasting reform,” Hamilton wrote in the email seen by Reuters. “We have some work to do at FEMA and restoring public confidence in this agency is essential.”
FEMA did not immediately respond to a request for comment on Hamilton’s email.
FEMA brings in emergency personnel, supplies and equipment to help areas begin to recover from natural disasters. Funding for the agency has soared in recent years as extreme weather events have increased the demand for its services.
The agency has 10 regional offices and employs more than 20,000 people across the country.
By Phil Stewart and Oliver Griffin
WASHINGTON/BOGOTA (Reuters) -Colombia on Sunday turned away two U.S. military aircraft with migrants being deported as part of President Donald Trump’s immigration crackdown, a U.S. official said, in at least the second case of a Latin American nation refusing U.S. military deportation flights.
Colombian President Gustavo Petro condemned the practice, suggesting it treated migrants like criminals. In a post on social media platform X, Petro said Colombia would welcome home deported migrants on civilian planes, saying they should be treated with dignity and respect.
Colombia’s decision follows one by Mexico, which also refused a request last week to let a U.S. military aircraft land with migrants.
“The U.S. cannot treat Colombian migrants as criminals,” Petro wrote, noting that there were 15,660 Americans without proper immigration status in Colombia.
Petro’s comments add to the growing chorus of discontent in Latin America as Trump’s week-old administration starts mobilizing for mass deportations.
Brazil’s foreign ministry late on Saturday condemned “degrading treatment” of Brazilians after migrants were handcuffed on a commercial deportation flight. Upon arrival, some of the passengers also reported mistreatment during the flight, according to local news reports.
The plane, which was carrying 88 Brazilian passengers, 16 U.S. security agents, and eight crew members, had been originally scheduled to arrive in Belo Horizonte in the southeastern state of Minas Gerais.
There, Brazilian officials ordered the removal of the handcuffs, and President Luiz Inácio Lula da Silva designated a Brazilian Air Force (FAB) flight to complete their journey, the government said in a statement Saturday.
The commercial charter flight was the second this year from the U.S. carrying undocumented migrants deported back to Brazil and the first since Trump’s inauguration, according to Brazil’s federal police.
Officials from the U.S. State Department, Pentagon, U.S. Department of Homeland Security and U.S. Immigration and Customs Enforcement did not immediately reply to requests for comment.
The use of U.S. military aircraft to carry out deportation flights is part of the Pentagon’s response to Trump’s national emergency declaration on immigration on Monday.
In the past, U.S. military aircraft have been used to relocate individuals from one country to another, like during the U.S. withdrawal from Afghanistan in 2021.
This has been the first time in recent memory that U.S. military aircraft were used to fly migrants out of the country, one U.S. official said.
U.S. military aircraft carried out two similar flights, each with about 80 migrants, to Guatemala on Friday.
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