Signature Bank was shut down by regulators in March in an effort to prevent a wider banking crisis.
Angus Mordant Bloomberg Getty Images
Subsidiary of New York Community Bancorp has entered into an agreement with the US regulator to buy deposits and loans from the New York base Signature Bankwhich closed a week ago.
The Federal Deposit Insurance Corporation said the deal would see its subsidiary, Flagstar Bank, assume all of Signature Bank’s deposits, some of its loan portfolio and all 40 of its former branches. About $60 billion in Signature Bank loans and $4 billion in deposits will remain in receivership, the agency said.
related investment news
Sunday’s announcement addresses one of two failed banks the FDIC is holding in receivership.
The statement does not refer to other, Silicon Valley Bankthe larger bank that the regulator took two days before Signature.
Tanda has assets of $110.36 billion, while SVB has $209 billion.
Reuters reported earlier on Friday that the FDIC will relaunch an auction for SVB’s assets after failing to attract buyers for the entire bank.
In the arrangement for Signature Bank’s assets, Flagstar will purchase $12.9 billion in loans at a $2.7 billion discount.
The FDIC estimates the deal will cost the Deposit Insurance Fund about $2.5 billion. The agency previously reported that the fund will have $128.2 billion at the end of 2022.