When autocomplete results are available use up and down arrows to review and enter to select.
The FDIC announced a purchase-and-assumption agreement with Flagstar Bank of Hicksville, N.Y., for substantially all deposits and certain loan portfolios of Signature Bridge Bank.
DIF Cost: The FDIC estimated the cost of the failure of Signature Bank to its Deposit Insurance Fund to be approximately $2.5 billion. The exact cost will be determined when the FDIC terminates the receivership.
Details: The FDIC said:
The 40 former branches of Signature Bank will operate under New York Community Bancorp's Flagstar Bank subsidiary starting today.
Flagstar's bid did not include approximately $4 billion of deposits related to the former Signature Bank's digital banking business, so the FDIC will provide these deposits directly to customers with associated accounts.
As of Dec. 31, the former Signature Bank had total deposits of $88.6 billion and total assets of $110.4 billion.
The newly announced transaction included the purchase of roughly $38.4 billion of Signature Bridge Bank's assets, including $12.9 billion in loans purchased at a discount of $2.7 billion.
Approximately $60 billion in loans will remain in the receivership for later disposition by the FDIC.
The FDIC received equity appreciation rights in New York Community Bancorp Inc. common stock with a potential value of up to $300 million.
Previous News
The Financial Services Information Sharing and Analysis Center’s latest weekly risk summary warns that community institutions should anticipate that cybercriminals will attempt to capitalize on uncertainty following the collapse of Silicon Valley Bank.
ImageMar 20, 2023
President Joe Biden called on Congress to authorize tougher penalties for senior bank executives whose mismanagement contributed to their institutions failing.
ImageMar 20, 2023
Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today’s testimony from Treasury Secretary Janet Yellen that uninsured deposits will be protected only at depository institutions that pose systemic risks to the financial system.
ImageMar 17, 2023
Related News Taxonomy