In a major shakeup at New York Community Bank, two longtime executives, John Pinto and John Adams, are set to depart the bank along with general counsel Patrick Quinn. Craig Gifford has been named the new CFO and Scott Shepherd will take over as head of commercial real estate lending. These changes come as NYCB grapples with financial distress and strives to regain the trust of investors and customers following a series of setbacks.
The bank has been facing challenges, including a surprise loss, dividend cuts, and concerns about its multifamily loan portfolio. Amid the turmoil, CEO Joseph Otting emphasized the importance of appointing experienced leaders to bolster the bank’s risk and compliance framework. The departure of Pinto, Adams, and Quinn signals a broader restructuring effort aimed at stabilizing NYCB’s operations and restoring its financial health.
NYCB’s struggles have been exacerbated by issues related to rent-stabilized buildings impacted by New York’s rent law, leading to financial strain for property owners and increased loan defaults. With the appointment of new leadership and infusion of capital from institutional investors, the bank aims to navigate these challenges and rebuild its reputation in the competitive New York real estate market.
