The Federal Deposit Insurance Corp. announced on Sunday that New York Community Bank will acquire a significant portion of failed Signature Bank in a $2.7 billion deal. The 40 branches of Signature Bank will now be rebranded under Flagstar Bank, a subsidiary of New York Community Bank. As part of the deal, $38.4 billion of Signature Bank’s assets, more than a third of its total assets at the time of failure, will be purchased. The remaining $60 billion of Signature Bank’s loans will remain in receivership and are expected to be sold at a later time. Signature Bank was a significant commercial lender based in New York that got involved in cryptocurrencies as a potential growth business. After Silicon Valley Bank’s collapse, depositors became worried about Signature Bank’s high amount of uninsured deposits and its exposure to crypto and tech-focused lending. According to regulators, Signature Bank’s failure is anticipated to cost the deposit insurance fund $2.5 billion, but this number may vary as the regulator sells off assets.

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