• Regional Commercial Lenders Beginning to Crumble - NYC Bank Loses 66% i

    From 61h.1601@21:1/5 to All on Fri Mar 1 22:25:25 2024
    XPost: talk.politics.misc, alt.economics, alt.politics.usa
    XPost: alt.politics.republicans

    https://www.dailymail.co.uk/yourmoney/article-13145821/new-york-community-bank-shares-plummet.html

    New York Community Bank stock sinks 20% in one day (and troubled
    lender has now lost two-thirds of its value in a month) - is
    Shark Tank star Kevin O'Leary’s prediction the bank would fail
    in MONTHS coming true?

    After markets opened on Friday shares in NYCB fell some 24 percent

    It came after the bank revealed additional losses and new leadership

    . . .

    This is sort of a followup to something I posted a
    few weeks ago.

    There have been many red flags, even red alerts, of
    late about the security of 'regional' institutions,
    especially those that made lots of "commercial" loans.

    Thing is, post-Covid, a lot of commercial real-estate
    (which includes entire buildings and many store-fronts)
    has been sitting EMPTY. Either the original borrowers
    are broke/gone or they switched to other biz models.
    The PRICE of said office/store space also spiked, which
    meant bigger loans.

    What this MEANS is that a MASSIVE amount of expected
    revenue from said loans will NOT materialize. The
    banks are stuck with empty space - indeed empty
    space that requires MAINT/INSURANCE. A large number
    of said loans come due THIS year - and it's gonna be
    a blood-bath.

    After the last real-estate debacle, the "big" banks
    had been a bit more conservative. But the smaller
    ones and private speculative lenders were not. This
    all started with Silicon Valley Bank, which lent
    zillions speculating on 'tech' startups, but it has
    now SPREAD.

    Note also that big 'blue' cities have been LOSING
    biz, large and small, as said cities have descended
    into anarchy. Biz is MUCH better off down south now.
    Screw NYC/LA/SanFran/Chicago, the $$$ is in Orlando.

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