New York Community Bancorp announced the appointment of Joseph Otting as President and Chief Executive Officer on 6 March 2024, effective 1 April 2024, following deposit outflows at the parent company of Flagstar Bank.
The appointment was announced in a press release issued by NYCB, which presented the investment as a strong endorsement of the new management team and announced that Otting would become chief executive. NYCB had disclosed concerns related to its commercial real estate loan portfolio and internal controls weaknesses earlier in 2024, revelations that were followed by declines in its share price.
OTTING'S BACKGROUND
Otting previously served as Chief Executive of OneWest Bank between 2010 and 2015, the California-based lender created from the assets of IndyMac Federal Bank following the financial crisis. He then served as the 31st Comptroller of the Currency between 2017 and 2020, the primary regulator of nationally chartered banks in the United States.
The press release highlighted his tenure as the 31st Comptroller of the Currency and as CEO of OneWest Bank from 2010 to 2015.
EQUITY INVESTMENT
Otting's appointment was announced as part of a more than $1 billion equity investment in NYCB led by Steven Mnuchin's Liberty Strategic Capital, with Hudson Bay Capital and Reverence Capital Partners, under which Otting and Mnuchin also joined the board.