Signature Bank was shut down by regulators in March in an attempt to avert a larger banking crisis.
Angus Mordant | Bloomberg | beautiful pictures
A subsidiary of New York Bancorp Community signed an agreement with US regulators to purchase deposits and loans from its headquarters in New York signature bankclosed a week ago.
Federal Deposit Insurance Corporation said The deal will see the subsidiary, Flagstar Bank, take on the majority of all Signature Bank deposits, some loan portfolios, and all of its 40 former branches. The agency said about $60 billion in loans from Signature Bank and $4 billion in deposits from the bank would be withheld upon receipt.
Sunday’s announcement refers to one of two failed banks that the FDIC is holding under the takeover.
The statement does not mention other, Silicon Valley Banka much larger bank that regulators took over two days before Signature.
Signature has assets of $110.36 billion, while SVB has $209 billion.
Reuters reported earlier on Sunday that the FDIC would restart an auction of SVB’s assets after failing to attract full-bank buyers.
Under the Signature Bank asset agreement, Flagstar will purchase a $12.9 billion loan 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 held $128.2 billion at the end of 2022.
