New York Community Bank buys Signature Bank for $2.7 billion
The deal will involve the purchase of $38.4 billion in Signature Bank assets, just over a third of Signature’s total when the bank collapsed a week ago.
NEW YORK – The New York Community Bank has agreed to pay a significant portion of the failed signature bank in a $2.7 billion deal, Federal Deposit Insurance Corp said. late Sunday.
The 40 branches of Signature Bank will become Flagstar Bank from Monday. Flagstar is a subsidiary of New York Community Bank. The deal will involve the purchase of $38.4 billion in Signature Bank assets, just over a third of Signature’s total when the bank collapsed a week ago.
The FDIC said Signature Bank’s $60 billion in loans remain in receivership and are expected to be sold in a timely manner.
Signature bank was the second bank bankrupt in this banking crisis, about 48 hours after the collapse of the Silicon Valley bank. New York-based Signature was a large tri-state commercial lender but had entered cryptocurrencies as a potential growth business in recent years.
After the failure of Silicon Valley Bank, depositors became nervous about Signature Bank’s health as it had a high number of uninsured deposits and crypto and other tech-focused loans. When it was shut down by regulators, Signature was the third largest bank failure in US history.
The FDIC expects Signature Bank’s failure to cost the deposit insurance fund $2.5 billion, but that number may change if the regulator sells assets. The Deposit Protection Fund is paid for by bank deposits and taxpayers do not bear the direct cost of a bank failure.
https://www.kvue.com/article/news/nation-world/new-york-community-bank-buys-failed-signature-bank/507-65c4df10-0488-4684-8123-53d32484fb87 New York Community Bank buys Signature Bank for $2.7 billion
