NY Community Bancorp woes likely to stay ‘contained’: Analyst

Shares of New York Community Bancorp have fallen more than 40% since Tuesday. This drop is following an announcement that the bank is facing losses from commercial real estate loans. Could this be a trend for regional banks?

Wedbush Managing Director David Chiaverini joins Yahoo Finance Live to weigh in on this challenge for the bank and what to expect in the coming months.

“I do expect this to be contained mostly to New York Community,” notes Chiaverini. Chiaverini states that the commercial real estate market is distinct in many ways, including the window of loan maturity, “the maturity schedule for these loans is drawn out,” which ideally should allow most banks to manage accordingly.