Guggenheim’s Millstein Says US Banks Are Sound Amid NYCB Tumult

Guggenheim Securities Co-Chair Jim Millstein said the US banking system is “pretty sound” in the wake of fresh turmoil at New York Community Bancorp, the lender hammered by a fresh stock rout after acknowledging weaknesses in how it tracks loan risks.

“There are always going to be a couple of banks that get out over their skis,” Millstein said Friday in a Bloomberg Television interview. While investors typically bail at any mention of trouble in financial reporting, NYCB’s latest woes stem from acquisitions that pushed its assets past the $100 billion threshold that triggers stricter federal oversight, he said. ...