Stock prices plummet, will New York Community Bank become the next "Silicon Valley Bank"?. The stock price fell 60% in a week and was downgraded to "junk status" by Moody's.
The chain of events can be traced back to a recent financial report released by the bank. The bank's loan-loss provisions come largely from soured commercial real estate loans, whose values have plummeted as people increasingly work from home and companies give up office space. As of the third quarter of last year, about 40% of total deposits accounted for about $250,000 in a single account.