Latest news with #FlagstarFinancial
Yahoo
2 days ago
- Business
- Yahoo
Flagstar likely to see pressure on Mamdani primary win, says Citi
Citi analyst Benjamin Gerlinger believes Flagstar Financial (FLG) shares are likely to see downside pressure over the near-term following the Democratic primary results and Zohran Mamdani's commanding lead in the ranked choice New York City governor primary. While concerns of a sweeping 'freeze the rent' campaign promise potentially pulls forward incremental credit concerns, the actual fundamental impact to Flagstar is likely very minimal over the short- to medium-term, the analyst tells investors in a research note. Additionally, Citi continues to feel 'comfortable' with Flagstar's commercial real estate credit profile. However, it believes the shares are in a 'prove it' position into the second half of 2025. The New York Citi primary results 'could open the door to an even more attractive entry point in the very near future,' contends Citi. It keeps a Buy rating on Flagstar Financial with a $15.50 price target The stock in morning trading is down 4% to $10.64. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on FLG: Disclaimer & DisclosureReport an Issue Rising odds of rent freezes in NYC negative for Flagstar, says Morgan Stanley Flagstar Financial Inc put volume heavy and directionally bearish Unusually active option classes on open June 25th Flagstar Financial Inc call volume above normal and directionally bullish Flagstar Financial Holds Virtual Shareholders' Meeting Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Rising odds of rent freezes in NYC negative for Flagstar, says Morgan Stanley
Following Zohran Mamdani's victory in the New York City Democratic mayoral primary, Morgan Stanley said the likelihood of rent freezes on New York City rent regulated apartments has increased, which is a negative for Flagstar Financial (FLG). Flagstar has made significant improvements in the credit quality of its portfolio and has increased reserves more than four times since the last rent freeze in 2020, notes the analyst, who thinks a one year rent freeze is 'manageable' for the bank. However, given Flagstar's skew to rent regulated properties, it also thinks more than one year of rent freezes would drive higher reserve build. The firm has an Equal Weight rating and $13 price target on Flagstar shares. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on FLG: Disclaimer & DisclosureReport an Issue Flagstar Financial Inc put volume heavy and directionally bearish Unusually active option classes on open June 25th Flagstar Financial Inc call volume above normal and directionally bullish Flagstar Financial Holds Virtual Shareholders' Meeting Flagstar Financial initiated with a Buy at Jefferies Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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First Post
2 days ago
- Business
- First Post
Socialist Robin Hood of Capitalist NYC: Mamdani's rise sets stage for a new kind of showdown
As Mamdani's win in NYC Democratic Primaries rattle the capitalists in the city, it leaves a learning lesson for Democrats as the struggle for relevance in the Trump-era read more The stunning victory of 33-year-old Indian-origin Democratic Socialist Zohran Mamdani has stunned the US financial capital and delivered an awakening to the Democratic Party. On Tuesday, Mamdani emerged as the winner of the Democratic primaries, toppling the aspirations of former New York governor Andrew Cuomo. While the journey to be the next mayor of New York City is still far for Mamdani, with current NYC Mayor Eric Adams and Republican pick Curtis Silwa being the hurdles, the Tuesday results reflected a different story. Mamdani's win raised the question of whether a Democratic Socialist can lead New York City, the mecca of wealth and capitalism. STORY CONTINUES BELOW THIS AD Apart from this, Mamdani's underdog win also highlighted the challenges establishment Democrats face with younger voters and working-class voters. It emerged as a learning experience for the party, providing it with a roadmap for future polls after witnessing an embarrassing defeat to the Republicans in the 2024 US Presidential Elections. More from United States Of America As Zohran Mamdani's socialist agenda wins in NYC, MAGA attacks him for his religion Socialist Robin Hood of Capitalist NYC Apart from his innovative short-form content, Mamdani stressed affordability in his progressive campaign. From promising rent freezes and free bus transit, child care, to forming government-run grocery stores, Mamdani laid out his policies with a pledge that New Yorkers would pay less. When his opponents hurled questions about how he would pay to actualise all his promises, Mamdani had one simple response: 'I'll pay for it by taxing the rich.' He made it clear that if he came to power, he would tax the rich and big businesses in a city with enormous wealth, including Wall Street. As per his manifesto, Mamdani wants to raise New York's corporate tax rates from 7.5 per cent to 11.5 per cent, which is not a novel concept. The tax rate will be the same as that of New Jersey. Apart from this, Mamdani wants to impose an additional 2 per cent surtax on New Yorkers making more than $1 million annually. So, how is Wall Street reacting to Mamdani's win? Meanwhile, Wall Street woke up on Wednesday to a volatile situation with Trump's deal with Iran and Israel and Mamdani's win. The self-proclaimed socialists' win in the primaries sent shockwaves through Midtown offices and downtown trading floors. Hedge fund managers, venture capitalists, and investment bankers are now confronting the possibility that a mayor hostile to their interests could be running NYC. Shares of New York-based banks exposed to real estate fell on Wednesday, with Flagstar Financial and Flushing Financial down 3.8 per cent and 3.4 per cent, respectively, Reuters reported. The capitalists in the city responded to Mamdani's win in panic. Several prominent financiers, including allies of Cuomo and Mayor Eric Adams, began mobilising within hours of Mamdani's victory. As per the report, a group of hedge fund executives and real estate magnates are looking to raise $20 million to back independent or alternative candidates who could derail Mamdani's general election bid against Adams and Silva. STORY CONTINUES BELOW THIS AD Some capitalists in NYC are also persuading Cuomo to run independently. Interestingly, efforts are also being made to persuade Republican nominee Curtis Sliwa to step aside, opening doors for a possible Trump administration appointment. Lessons for Democrats It is pertinent to note that Tuesday's primary came almost one year after former US President Joe Biden's disastrous debate performance against the current US President Donald Trump, which ultimately led to Trump's win in the 2024 race. Mamdani's performance reflected that Democrats need to get out of the old vanguard and rely on young faces. Many, like Vermont Senator Bernie Sanders, believed that Democrats lost the elections in 2024 because they abandoned the country's working class. Not only this, Latinos, Arabs and Muslims, who supported Democrats in the past, supported Trump in 2024, mainly because they believed Trump offered better economic policies than then-Vice President Kamala Harris. Ultimately, this section of the American political landscape witnessed betrayal with Trump's bizarre policies. In Mamdani's case, the 33-year-old Indian-origin Democrat maintained that he was working for the welfare of the working class. 'A party where we fight for working people with no apology,' Mamdani said during his victory speech. 'A life of dignity should not be reserved for a fortunate few. It should be one that the city government guarantees for every New Yorker.' STORY CONTINUES BELOW THIS AD Hence, progressives like Mamdani can bring back the working-class voters Democrats lost in 2024. However, Republicans have often painted Mamdani as radical. Many have often called out his pro-Palestinian stance, some framing it as 'anti-semitic'. While Mamdani has spoken out against antisemitism in New York, his past positions on Israel, including declining to condemn pro-Palestinian rhetoric like 'globalise the intifada,' which some Jews see as a rallying cry for violence against them. Hence, politicians like Mamdani might not turn out to have an appetite for red and swing states. Hence, Democrats will have to maintain a fine balance. They have to reconnect with the working class, ensuring that the conservative vote won't run away. In regards to Mamdani, the popularity of his ideas will again be put to the test during the Mayoral General Elections in New York City.
India Today
2 days ago
- Business
- India Today
Zohran Mamdani's mayoral primary raises alarm among New York business community
Business leaders in New York City voiced concerns on Wednesday, following progressive Democrat Zohran Mamdani's likely victory in the city's hotly contested primary for mayor the day York, the nation's preeminent financial center, boasts an annual GDP of more than $1 trillion and more residents than any city in the nation - many who are struggling with the high cost of rent, health care and concerns motivated voters to come out in early voting, and in 100 degrees Fahrenheit heat (37.7 degrees Celsius) on Tuesday for the 33-year-old Mamdani, a self-described democratic socialist who finished first in the city's initial round of ranked-choice voting ahead of the frontrunner, former New York state governor Andrew Cuomo. Final results of the city's ranked-choice system will not be known for a couple of weeks. Mamdani campaigned on freezing rent, free buses, and subsidised groceries, policies that business leaders say may not solve the affordability crisis and could push many to leave the city under threat of higher taxes. He has also called for a higher minimum wage and a new office to promote small businesses."Think about how crazy this situation is. A man who prides himself on being a socialist has a real shot at becoming the mayor of the heart of the global financial system," said Anthony Pompliano, founder and chief executive officer at Professional Capital Management, and one of the biggest investors in cryptocurrencies. "Irony doesn't even start to describe the situation."advertisementMamdani did not respond for immediate request for will still have to win November's general election against currentMayor Eric Adams who is running as an independent and Republican Curtis Sliwa, who lost to Adams in 2021. Cuomo may also run in the general election as an promise to freeze rent resonated particularly in Manhattan, where the median monthly rent for an apartment sits at a record $4,571. A renter typically must earn 40 times the rent. As mayor, Mamdani would be able to appoint members of the city's rent guidelines board. Apartment owners say such a move would make buildings unlivable."A four-year rent freeze all but ensures these buildings completely crumble," said Kenny Burgos, chief executive officer of the New York Apartment Association, which represents several thousand property owners and managers. "I sympathise with folks who have an issue with the cost of rent and the lack of affordability, but there's a conversation to be had on policy that doesn't ignore the cost."Shares of New York-based banks exposed to real estate fell on Wednesday, with Flagstar Financial FLG.N and Flushing Financial FFIC.O, down 3.8% and 3.4%, of May, Manhattan's median rent was up 7.6% from a year earlier, up 6.6% in northwest Queens, and is at a record in Brooklyn, according to real estate company Douglas lived in New York since 1990; it's only gotten worse for what it costs," said Marc Chandler, chief market strategist at Bannockburn Capital Markets. "Most young people I know have to have roommates."Mamdani also campaigned on subsidised grocery stores, which drew opposition from store owners."If he opens stores and gives the product away for nothing on the city's budget, how do you compete with City Hall? People walk in, take what they want, they don't pay," said John Catsimatidis, a Republican donor and CEO of New York-based grocery chains Gristedes and D'Agostino if elected, would have to also contend with the city's dwindling operating budget surplus, which has been falling as the city's workforce shrinks due to retirees and people leaving the city, according to New York's independent budget Tilson, a hedge fund executive who also ran for mayor but attracted little support, said that Mamdani was "totally unqualified to be mayor of one of the world's largest, most complex cities," and predicted that Adams would drop out and support Cuomo in an effort to defeat fund managers Bill Ackman and Daniel Loeb blasted the outcome on social media following the results, with Loeb reposting a meme about Florida real estate agents laughing in dismissed the idea of a mass exodus. "If I had a nickel for every time I heard that, I wouldn't have to work anymore."- EndsTrending Reel IN THIS STORY#United States of America
Zawya
2 days ago
- Business
- Zawya
New York banks, REITs fall as Mamdani's mayoral lead stokes rent freeze worries
Shares of several New York-based banks and real estate investment trusts fell on Wednesday as Zohran Mamdani's lead in New York City's Democratic mayoral primary stoked concerns that his proposed rent freeze could pressure building owners. On the campaign trail, Mamdani, a 33-year-old state lawmaker and self-described democratic socialist, vowed to lower costs for New Yorkers as a mayor by freezing the rent for all rent-stabilized apartments. Wall Street analysts have warned that the move could hurt building owners already grappling with higher costs, as constraints on their ability to raise rents might make it more difficult for some to repay their debt. "Politicians continue to march down a perilous path for rent-regulated multi-family with allowable rent increases lagging expense growth," brokerage Stephens said. The real estate sector has already been reeling under pressure as higher interest rates strained borrowers while the post-pandemic adoption of remote working left office buildings vacant. While Mamdani's proposals could face budgetary constraints and opposition from industry participants, banks in New York City could remain under pressure in the near-term, BofA analysts said last week. Shares of Flagstar Financial and Dime Community Bancshares fell 5% and 4%, respectively, while Flushing Financial was down 3%. Flagstar and Dime Community have a heavy exposure to rent-regulated multi-family in New York, according to analysts. Among New York-exposed REITs, SL Green Realty and Vornado Realty Trust fell 5% each. Equity Residential and Empire State Realty Trust fell 3% and 4%, respectively. LXP Industrial Trust was down 2.5%. However, while Mamdani's proposals have rattled investors, some analysts said the immediate risks may be limited. Analysts at Citi said the concerns stirred by his sweeping "freeze the rent" campaign promise could bring forward incremental credit concerns, but the actual fundamental impact on banks is likely to be minimal in the short to medium term.
