A sign is pictured above a New York Community Bank branch in Yonkers, New York on January 31, 2024.
Cool Mike | Reuters
Fighting actions Community Bancorp of New York. It fell more than 40% on Wednesday on reports that the regional bank is seeking a liquidity infusion.
Reuters and the Wall Street Journal reported on Wednesday that the bank was seeking outside investors for liquidity to shore up its balance sheet.
NYCB did not immediately respond to a request for comment from CNBC.
The bank’s shares were halted several times during Wednesday’s trading session and were already falling sharply the day before the reports were released.
A cash infusion would be the latest development in a turbulent start to the year for NYCB. The bank disclosed in late January that it was dramatically increasing the provision for potential loan losses on its balance sheet. Since then, the bank has seen its credit rating downgraded to junk by Moody’s Investors Service, revealed it had “identified material weaknesses in the company’s internal controls related to the internal review of loans” and replaced its chief executive.
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