NYC-Exposed Banks Fall as Wedbush Warns of Threat From Democrats
- Wedbush sees apartment loan trouble brewing on rent control
- New York Community Bancorp among top bank index decliners
This article is for subscribers only.
Newly empowered New York Democrats eyeing rent control laws set to expire on June 15 pose a risk to loan growth and credit, Wedbush warned in a note. That helped push shares of New York Community Bancorp and other exposed banks lower in trading Wednesday.
Republicans had controlled the state’s Senate for the past decade, and had successfully blocked Democratic efforts to change rent regulation laws, analyst Peter Winter wrote in a note. Now, Democrats are in complete control of New York state government and have “introduced nine bills on rent regulation that clearly favor the tenants,” he said.