Bancorp Unit to Buy Signature Bank Assets

Getting your Trinity Audio player ready...

New York Community Bancorp unit to buy Signature Bank assets – FDIC

A subsidiary of New York Community Bancorp has entered into an agreement with U.S. regulators to buy deposits and loans from New York-based Signature Bank, which was closed a week ago.

The Federal Deposit Insurance Corporation (FDIC) said the deal would see the subsidiary, Flagstar Bank, assume substantially all of Signature Bank’s deposits, some of its loan portfolios and all 40 of its former branches. Roughly $60 billion of Signature Bank’s loans and $4 billion of its deposits would remain with it in receivership, the agency said.

The Sunday announcement addresses one of two failed banks the FDIC is holding under receivership.

The statement did not refer to the other, Silicon Valley Bank (SVB), a much larger bank that regulators took over two days before Signature.

Signature had $110.36 billion in assets, whereas SVB had $209 billion.

Reuters reported earlier on Sunday that the FDIC would relaunch its auction for SVB’s assets after failing to attract buyers for the whole bank.

Under the arrangement for Signature Bank assets, Flagstar will buy $12.9 billion of loans at a discount of $2.7 billion.

The FDIC estimated the deal would cost its Deposit Insurance Fund approximately $2.5 billion. The agency previously reported that the fund had held $128.2 billion at the end of 2022.


Did you know that if you subscribe to our website, you will receive email notifications whenever content changes or new content is added.
1. Enter your e-mail address below and click the Sign Me Up button.
2. You will receive an email asking you to confirm your intention of subscribing to our site.
3. Click the link in the email to confirm. That’s all there is to it!

Enter your email address below to subscribe to Working Teddy.

Note: if you wish to unsubscribe from our site, click the unsubscribe link at the bottom of the email you received.
Then indicate you no longer wish to receive our emails.

Thank You
Working Teddy Team