NYC banks fall as Mamdani set to win Democratic mayoral primary

Dime Commercial Bancshares

25/06/2025 14:44

** Shares of some New York-based banks fall as Zohran Mamdani on verge of winning New York City's Democratic mayoral primary

** Flagstar Financial FLG.N, formerly New York Community Bancorp, down 5.8%

** Dime Community Bancshares DCOM.O and Flushing Financial FFIC.O down 3.4% and 2.4%, respectively

** Mamdani has vowed to freeze rents on rent-stabilized apartments in NYC if elected mayor

** Such a move could make it difficult for some building owners to service their debt leading to more multi-family loan delinquencies, analysts say

** Citi Research says concerns of a sweeping "freeze the rent" campaign promise potentially pulls forward incremental credit concerns

** Says FLG shares are likely to see incremental downside pressure over the near-term

** Brokerage Stephens says banks with highest exposure to rent-regulated multi-families on its list include FLG and DCOM

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com))