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Failed signatories will be taken over by New York Community Bancorp

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signature bank collapsed last week In the wake of Failure of Silicon Valley Bankwill be taken over by New York Community Bancorp, the Federal Deposit Insurance Corporation (FDIC) announced Sunday. With $88.6 billion in deposits and more than $110 billion in assets at the end of 2022, Signature Bank’s failure is considered the third-largest bank failure in U.S. history.

“(FDIC) purchased and purchased substantially all deposits and certain loan portfolios of Signature Bridge Bank, The National Association, by Flagster Bank, The National Association, Hicksville, New York, a wholly owned subsidiary of New York Community Bancorp. We have entered into a succession agreement with Inc., Westbury, NY,” the FDIC said in a statement. Signature Bridge Bank was created by the FDIC to take over the operations of Signature Bank, which was shut down by regulators in New York last week.

New York Community Bancorp will operate 40 branches of former Signature Bank under the name of Flagstar Bank, one of its subsidiaries, from Monday, with the FDIC assuring depositors that the bank will operate as normal. .

“Customers of Signature Bridge Banks, NA will be able to maintain their current branches until they receive notice from the prospective institution that full-service banking is available at Flagster Banks, NA branches,” the FDIC said. We have to keep using it,” he said.

“Today’s deal included the purchase of approximately $38.4 billion of NA assets, Signature Bridge Bank, including $12.9 billion of loans purchased at a $2.7 billion discount,” the FDIC continued. . “Approximately $60 billion of loans remain in trustees for subsequent disposal by the FDIC,” it said.

New York Community Bancorp acquired Flagstar last December. press release.

The successive failures of Signature and Silicon Valley banks sparked a nationwide fear of bank failures in a domino effect, but the federal government intervened to pay back depositors and sell failed financial institutions to functioning banks. trying to

The FDIC estimates that the total cost of a Signature Bank failure of the Deposit Insurance Fund would be approximately $2.5 billion.


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Written by Natalia Chi

Chicago Popular; Chicago breaking news, weather and live video. Covering local politics, health, traffic and sports for Chicago, the suburbs and northwest Indiana.

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