New York Community Bank buys parts of Signature Bank
The New York Community Bank wants to take over a large part of the collapsed Signature Bank. The money house is buying 40 branches of Signature Bank as part of a $2.7 billion deal (around 2.5 billion euros), which would be converted into branches of its subsidiary Flagstar Bank from Monday, the deposit insurance authority FDIC said on Sunday (local time). with. The deal also includes the purchase of $38.4 billion in Signature Bank assets — just over a third of total assets.
Signature Bank collapsed just over a week ago, about 48 hours after Silicon Valley Bank collapsed. Signature had invested in cryptocurrencies for the past few years. The bank’s $60 billion in loans remain under receivership, according to the FDIC, and are expected to be sold in due course.
The FDIC estimated that Signature Bank’s failure would cost the Deposit Insurance Fund $2.5 billion. However, this number could still change if the regulator sells assets, it said. The deposit insurance fund is funded by the banks, and taxpayers don’t bear the direct costs of a bank failure.