The announcement of material weaknesses in internal controls, especially in a financial institution, is a significant negative signal to investors, indicating potential risks in the company's operational and financial reporting integrity. Coupled with a leadership transition, this news can lead to uncertainty and a lack of confidence among investors, likely resulting in a short-term negative impact on the stock price. The recent downgrade by Moody's and the historical low share prices further exacerbate the situation, making the short-term outlook for NYCB's stock price pessimistic.