New York Community Bancorp (NYCB) shares rose again after falling 42% with the good news of a $1 billion investment in the bank. NYCB is an American regional bank with more than $100 billion in assets that acquired the crypto-friendly Signature Bank. However, NYCB has had a rough go of it in Q4, with weaker-than-expected financial results, a quarterly dividend reduction, and potential losses from poorly performing loans in the commercial real estate sector.

NYCB shares fell more than 42% to $1.76 on March 6, after which trading was halted. Then, with the announcement of a strategic equity investment of more than $1 billion, shares took off and prices rose to $4.

“With over $1 billion in capital investment in the bank, we believe we have adequate capital should reserves need to be increased in the future,” said former Treasury Secretary and new NYCB board member Steven Mnuchin.

NYCB's volatile day comes a week before the Federal Reserve's banking bailout program is set to expire on March 11. The Bank Term Funding Program (BTFP) was launched to provide additional funding to "eligible depository institutions" to enable banks to meet the needs of all depositors.

However, with the launch of BTFP, Bitcoin prices increased by 40% in March 2023. On March 7, angel investor and author Balaji Srinivasan compared the banking disaster to the 2008 financial crisis and said, "Treasury bills themselves are the new toxic waste this time."#NYCB#blockchain #finance

What do you think this volatility experienced by NYCB means for the banking industry? We are waiting your comments.