Troubled New York Community Bank Corp raises concerns about commercial real estate sector

Shares of New York Community Bank Corp fell 40% following losses on two real estate loans, highlighting concerns about the commercial real estate sector. The bank's losses and provision for future losses indicate potential trouble in the sector, with worries that more banks may be impacted. Commercial real estate faces challenges due to falling values, high leverage, and changing office demands. Buildings with high leverage and declining values may result in loans being worth more than the building, leading to possible defaults and economic consequences. While the likelihood of a bank run is low due to regulatory protections, the sector remains an area of concern.