The troubles of NYCB may not end. Why?

New York Community Bancorp (NYCB) has had yet another turbulent week. Following the announcement that it had raised $1 billion in capital from private investors, including Liberty Strategic Capital, the former Treasury Secretary Steve Mnuchin's firm, the regional bank revealed that it had lost $7.8 billion, or 7%, of deposits in the previous month. 

Yang Tang, the CEO and co-founder of Arch Indices told news reporters about the potential implications of the most recent developments at NYCB for the commercial real estate market and the larger US banking sector. 

"I believe that the situation at NYCB is worse because the current financial gap is so great. "When asked today's call, 'What is the marginal cost of deposits?', they sidestepped the question," according to Tang. "5.5% is the Fed Funds Rate. So if you go to the Federal Home Loan Banks and you get a loan, you're going to be looking at 6%. The average yield on the loan right now is 5.72%. So every dollar they have to replace is negative it on the net interest margin." 

On January 30, NYCB announced a 70% drop in its dividend and a half-billion-dollar increase in its reserve for loan losses. The announcement was a surprise loss for investors and raised concerns over the overall health of regional lenders as a whole.