Embattled New York Community Bancorp names veteran DiNello as executive chair

(Reuters) -New York Community Bancorp on Wednesday named banking veteran Alessandro DiNello, who has been on the board since the embattled lender bought Flagstar Bank in 2022, as its executive chairman.

Shares rose about 8.6% before the bell, stemming a selloff after the lender last week disclosed huge provisions tied to likely sour loans from the commercial real estate segment, posted a surprise quarterly loss and slashed dividend payout.

The share fall wiped off about 60% of the bank's market value to just over $3 billion, triggered credit rating cuts and dragged down shares of its peers.

More than a dozen brokerages have cut their price targets or their ratings on the stock.

The bank last year said DiNello was made a non-executive chair of the bank for two years following the merger of Flagstar in December 2022 where he was CEO for nearly a decade.

The bank on late Tuesday said in its mid-quarter update on its financial health that it was looking for candidates to fill up the role of chief risk officer and chief audit executive.

Analysts have been concerned about corporate governance at the bank, which disclosed the departures of the executives in these roles following a report from Bloomberg.

(Reporting by Niket Nishant in Bengaluru; Editing Sriraj Kalluvila and Arun Koyyur)

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