Another scandal! Following the disclosure of internal control deficiencies and CEO changes, New York Community Bank (NYCB.US) plunges more than 20% after hours.

New York Community Bank (NYCB.US) announced a change in leadership and disclosed internal control issues, causing its stock price to drop more than 20% in after-hours trading on Thursday. In recent months, New York Community Bank has been under heavy pressure due to concerns about its exposure to commercial real estate risks, with its stock price continuously falling, down 53% so far this year. Recently, New York Community Bank announced a revision to its fourth-quarter performance, increasing disclosures related to its internal risk management. The bank stated in a filing to the U.S. Securities and Exchange Commission (SEC): "As part of management's assessment of internal controls, management found significant deficiencies in internal controls related to internal loan reviews due to inadequate supervision, risk assessment, and monitoring activities." Additionally, the bank announced that its Executive Chairman, Alessandro DiNello, will assume the positions of President and CEO, effective immediately. After Moody's downgraded New York Community Bank to junk status, DiNello, who previously served as CEO of Flagstar Bank, was appointed as Executive Chairman of New York Community Bank in early February. New York Community Bank acquired Flagstar Bank in 2022. Facing multiple crises, DiNello responded in a press release on Thursday, stating, "While we are facing challenges in the near term, we are confident in the bank's future direction and our ability to serve customers, employees, and shareholders in the long term. The adjustments to the board and leadership team signal a new chapter that is currently unfolding." In another leadership change, Marshall Lux will replace Hanif Dahya as the Chairman of the board at the bank. Lux previously served as the Global Chief Risk Officer for JPMorgan Chase's Consumer Bank from 2007 to 2009. Previously, on January 31st, New York Community Bank disclosed higher-than-expected potential loan loss expenses, once again raising concerns about the commercial real estate market and regional banks. In 2023, several regional banks, including Silicon Valley Bank, collapsed due to customer and investor concerns about bank debt. New York Community Bank acquired one of the collapsed banks, Signature Bank, in March last year.