The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

NYCB says executive chairman is now in charge

New York Community Bancorp in Hicksville made it clear that Alessandro DiNello is in charge.

The $116.3 billion-asset company disclosed in a regulatory filing that Thomas Cangemi, its president and CEO, now reports directly to DiNello, who became executive chairman on Feb. 7.

New York Community’s board also changed the company’s bylaws to require support from three-fourths of directors to remove DiNello over the next two years. The same threshold exists to amend or modify his employment contract.

The company has been under pressure since it reported a large fourth-quarter loss that included a big loan-loss provision, stoking concerns about its commercial real estate exposure. The company also slashed its dividend.

New York Community then addressed worries that its chief risk officer had left by stating that it had begun an “orderly” process to find a replacement. It also made DiNello, who had run Flagstar before its sale to New York Community, its executive chairman.

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