(Reuters) – Embattled lender New York Community Bancorp on Wednesday named Alessandro DiNello, a banking industry veteran who had joined its board after the lender bought Flagstar Bank in 2022, as its chairman with immediate effect.
DiNello, most recently the non-executive chair of the board, was previously the CEO of Flagstar for nearly a decade.
Shares rose about 7% in volatile premarket trading.
The appointment comes as a week-long sell-off has wiped out about 60% of its stock’s value and fueled credit rating cuts and downgrades. That followed the bank’s surprise quarterly loss and a 70% cut to its dividend last week.
Late on Tuesday, the bank had also published a mid-quarter update about its financial health.
It also said it was looking for candidates to fill up the chief risk officer (CRO) and chief audit executive positions, and currently had “qualified personnel” holding those roles on an interim basis.
Analysts had expressed concerns about corporate governance at the bank, which disclosed the departures following a report from Bloomberg.
(Reporting by Niket Nishant in Bengaluru; Editing by Arun Koyyur and Sriraj Kalluvila)
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