did not know that it could cause a financial crisis:
..what worries investors more is the NYCB’s $37 billion multi-family housing portfolio, about half of which are comprised of New York rent-regulated units.
...Why have these loans become toxic?
Blame Democrats in Albany, who in 2019 restricted landlords’ ability to raise rents to pay for renovations and “de-regulate” rent-stabilized units. ... One result is that landlords have removed rent-regulated apartments from the market and are leaving them vacant rather than spend on maintenance and improvements that they can’t recoup .... Lower anticipated future rents have also slashed property values. ... NYCB’s rent-regulated portfolio could be a ticking time bomb.
And ironically,
Tighter supply [in the rent controlled market] has pushed up rents in the non-regulated market—one reason Manhattan’s average market-rate monthly rent has surged 30% over the last two years.
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