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Number of weak US banks jumps as NYCB stabilised on $1bn capital raise

Investors including former Treasury secretary Steven Mnuchin stand to make hundreds of millions on bailout

The number of problem banks in the US has jumped by 18 per cent, regulators warned, as New York Community Bank was stabilised by a $1bn capital raise led by former US Treasury secretary Steven Mnuchin.

Twelve months after the failure of Silicon Valley Bank shook the regional banking sector, NYCB’s recent struggles have underscored the continuing fragility at some US lenders. 

The Federal Deposit Insurance Corporation said on Thursday that the number of weak US banks had risen by eight to 52 in the final three months of 2023, the biggest jump since the demise of SVB.

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