A New York Rent-Control Bank Panic: Investors fret about NYCB’s multi-family housing portfolio.
Regional bank share prices have tumbled since New York Community Bancorp (NYCB) reported surprisingly large losses on real-estate loans. Don’t blame this mini-bank panic only on underwater office buildings. Primary culprits are Albany’s destructive rent-control laws. NYCB last month reported $552 million in credit losses, including a $185 million charge-off mostly from two office and …