| NYCB Was Gifted Signature
Bank Now Otting Cash as CEO by
Mnuchin Thumbs Nose at CRA
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH BRONX /
SDNY, March 16– With no public
comment period, New York
Community Bank was handed the
40 branches of Signature Bank,
to re-open them as braches of
Flagstar, which NYCB bought in
a proceeding delayed by fair
lending problems.
Back in
April 2021, Fair Finance Watch
and Inner City Press predicted
that the proposed merger of
New York Community Bank and
Flagstar would flounder, on
disparate lending and
regulatory evasions. And it
was delayed.
So, a fair
lending rogue benefited from a
bail out, or a bank with a
former NYS Banking
Superintendent Derrick Cephas,
and Barney Frank, on its board
of directors.
Jump cut to early February
2024 and NYCB's stock price fell
by 60%, Valley National down
too.
On February 29, NYCB's long time
CEO Thomas Cangemi was out and
NYCB said it had "identified
material weaknesses." Why didn't
the regulators identify them, as
Fair Finance Watch protested
Flagstar, and on Signature?
Now the kicker: Steve Mnuchin
invests, and taps as CEO of NYCB
Joseph Otting, who led attacks
on the Community Reinvestment
Act, and scammed the CRA comment
process when last he headed a
bank.
New York Community Bank
CEO Joseph Otting will receive
an annual base salary of $1.25
million, the bank disclosed in a
Securities and Exchange
Commission filing Friday.
Otting will also be eligible for
an annual cash bonus with a
target value of $2.25 million,
but that amount could balloon to
$4.5 million, according to the
filing. Otting is
receiving a one-time, 10-year
stock option award covering 15
million shares at $2 per share,
NYCB said The options will vest
over three years in equal
quarterly installments, unless
there’s a change in control of
the bank. In that case, they’d
vest immediately, the bank said.
So Otting may sell, or preside
over the failure, of another
bank, like OneWest.
We'll have more on this.
***
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