98 New York Community Bancorp (NYCB) encountered fresh turmoil on Wall Street after disclosing “material weaknesses” in its internal controls, resulting in a $2.4 billion blow to earnings and the replacement of its chief executive.The bank’s shares nosedived by 19% in after-hours trading on Thursday, compounding its steep decline on the stock market.NYCB initially raised concerns in January with an unexpected quarterly loss announcement and a dividend cut for shareholders. The subsequent sharp drop in its stock, down approximately 54% this year, amplified apprehensions about the regional banking sector in the United States.NYCB’s woes unfolded less than a year after the collapse of Silicon Valley Bank (SVB), which triggered a regional banking crisis. First Republic became the largest US lender to fail since 2008 in the aftermath of SVB’s demise last May.The bank’s expansion last year, notably through the acquisition of Signature Bank’s assets following SVB’s collapse, saw its assets surpass $100 billion.NYCB revealed a $2.4 billion impairment charge for the fourth quarter, associated with historical transactions. The charge, emphasized NYCB, does not affect regulatory capital ratios or existing credit agreements.An evaluation of NYCB’s internal controls exposed “material weaknesses” concerning internal loan review, attributed to ineffective oversight, risk assessment, and monitoring activities, the bank disclosed in a regulatory filing.Thomas Cangemi, NYCB’s president and CEO, stepped down immediately, with Alessandro DiNello, previously serving as executive chairman, assuming the role.DiNello expressed confidence in the bank’s trajectory despite recent challenges and highlighted the changes in the board and leadership as indicative of a new chapter underway.Headquartered in Hicksville, New York, NYCB concluded last year with deposits totaling $81.4 billion and operates 420 branches. You Might Be Interested In Indian Economy Poised For 7% Growth In Fiscal Year 2024-25: Ministry Of Finance IDfy Secures $27 Million in Funding to Transform Identity Verification Across Asia HDFC Bank Pursues Singapore Banking License in Strategic Move to Tap Indian Diaspora Abroad Government show cause notice prompts review from Samsung Great Eastern’s Profits Driven by Investment Income in Singapore Netflix Shareholders Reject Executive Compensation Plans Amidst Writers’ Protest