Finance
NYCB to Sell $5 Billion of Loans to JPMorgan to Free Up Cash
- Once complete, deal will also bolster capital ratio, bank says
- Firm is moving quickly to implement new strategy, Otting says
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New York Community Bancorp, disposing of assets and freeing up cash after its rescue by investors, agreed to sell about $5 billion of loans to JPMorgan Chase & Co.
The disposal of so-called mortgage warehouse loans will bolster NYCB’s capital and improve its liquidity, with proceeds to be held in cash and securities, the company said Tuesday in a statement that didn’t disclose the terms. NYCB had told investors about two weeks ago that it was poised to do a deal of that size at par, minus a transaction fee.