Subsidiary of New York Community Bancorp Acquires Signature Bank
- Signature’s assets were $110.36 billion, whereas SVB’s had $209 billion.
- Bitcoin climbed beyond $28,000 for the first time since June 2022.
With the approval of American regulators, a division of New York Community Bancorp has agreed to buy deposits and loans from the recently shut down Signature Bank in New York.
Flagstar Bank, a wholly owned subsidiary of Flagstar Bank, was announced by the FDIC to have agreed to acquire essentially all of Signature Bank’s deposits, part of its loan portfolios, and all of the bank’s previous 40 locations. According to the government, the bank would continue to be under receivership with around $60 billion in loans and $4 billion in deposits.
The FDIC has taken receivership of two insolvent banks, and one of them was addressed in a statement made on Sunday. Two days before Signature, authorities took over a much bigger bank called Silicon Valley Bank, although that institution was not included in the announcement.
Bitcoin Rallies Amid Banking Chaos
Signature’s assets were $110.36 billion, whereas SVB’s had $209 billion. Earlier on Sunday, Reuters reported that the FDIC will reopen its auction for SVB’s assets due to a lack of interest in purchasing the whole bank.
A total of $12.9 billion in loans from Signature Bank will be purchased by Flagstar at a concession of $2.7 billion under the terms of the agreement. An estimated $2.5 billion was the amount the FDIC said the acquisition would cost the Deposit Insurance Fund. According to a recent report from the government, the fund’s balance was $128.2 billion by the end of 2022.
On Sunday, March 19, Bitcoin (BTC), the biggest cryptocurrency in the world, climbed beyond $28,000 for the first time since June 2022 and is now trading at $28,335 with a market valuation of $547 billion.
