The New York mayor candidate, the MP Zohran Mamdani (D-NY), speaks to followers during an election night on June 24, 2025 in the Long Island district of the Queens Borough in New York City.
Michael M. Santiago | Getty pictures
Shares of the New York Regional Bank Flag star After the obvious victory of Zohran Mamdani in the New York Democratic Mayor's primary school, almost 4% were invited on Wednesday after Zohran Mamdani's obvious victory.
Flagstar is the renamed name of New York Community Bancorp, which was sometimes under pressure due to its real estate exposure in 2024. Former finance minister Steven Mnuchin led an investment of $ 1 billion in the company in March of this year.
Mamdani, who is now the likely favorite to win the general elections in November, promised to increase stabilized units during his campaign. The Mayor of New York City has the authority to appoint representatives to the regulatory authority that monitors the rental apartments. A break to rent increases could affect the profit profile of multi -family rental properties.
Stock Diagram -iconstock -Igram -Symbol
Flag star Financial last day
The exact effects of such a rental freeze on the books of Flagstar are unclear. The analyst of Deutsche Bank, Bernard von-Gizycki, estimated that between $ 16 billion and $ 18 billion of the bank's multi-family credit portfolio would be suspended on the New York rental regulations or about a quarter of the entire bank's credit. Manan Gosalia, analyst of Morgan Stanley, estimated that the number drops to $ 11 to $ 12 billion if only for buildings in which more than half of the units rent is regulated.
In a reference to customers, however, the barclays analyst Jared Shaw said that the current rental regulations already keep the price increases under the pace of cost increases, and added: “We do not see this view as something that would change the investment thesis.” Gosalia said that a short-term rent freeze for flagstar should be “manageable”, but the bank could stimulate a longer-term break to increase its loan losses.
On Wednesday there was also pressure on Wednesday, with office real estate shares with New York City Exposation were put under pressure SL Green Realty And Vornado Realty Trust fell by 5.7% or 6.7%. Mamdani has requested a higher corporate tax rate, but as a mayor he would have little control over this policy area.
Mamdani led the former New York governor Andrew Cuomo after the ballot papers had been counted on Tuesday, and Cuomo collected the race. However, the main level uses an electoral system for the choice, which means that Mamdani is officially the democratic candidate if he surpasses 50% of the vote in a later count.
In the parliamentary elections, Mamdani Curtis Sliwa will be expected with the Republican candidate and some independent candidates, including the incumbent mayor Eric Adams.
– Michael Bloom from CNBC contributed the reporting.