Flagstar Bank — a subsidiary of New York Community Bancorp, Inc. — will acquire Signature Bank, as per a press release sent out by the Federal Deposit Insurance Corporation (FDIC) on March 19.
Signature was up for sale and being auctioned by the FDIC — with the caveat that any buyer would be forced to divest from crypto and digital banking services, according to a Reuters report.
That warning has proven to be true, as stated by the FDIC in its press release:
“Depositors of Signature Bridge Bank, N.A., other than depositors related to the digital banking business, will automatically become depositors of the assuming institution.”
The FDIC added that all deposits assumed by Signature’s new owners will continue to be insured by the FDIC up to the insurance limit, adding that:
“Flagstar Bank’s bid did not include approximately $4 billion of deposits related to the former Signature Bank’s digital banking business.”
The $4 billion deposits not covered by Flagstar Bank’s bid will be provided by the FDIC “directly to customers whose accounts are associated with the digital banking business.”
According to public filings, Flagstar is owned and operated by the New York-based Community Bancorp, Inc. — which goes back to 1851 — established in Vermont as a growth-orientated bank that is now one of the largest regional banks in the country, with 395 locations.
NYCB's stock prices fluctuated wildly amid the impending conclusion of the Federal Reserve's banking bailout program. Following a sharp decline on Wednesday, shares rebounded swiftly, propelled by the announcement of a $1 billion investment. Former Treasury Secretary led the capital injection. The conclusion of the bailout program signifies banks will face greater challenges ahead.
Cheng YuanNYCB's acquisition of Signature Bank led to initial gains, but a $260M Q4 loss and dividend cuts reflect deeper challenges, sparking debates over crypto's role.
MiyukiSignature bank's liquidity crisis was sparked by a range of depositors withdrawing their funds, said Harris.
Coinlive The FDIC said early estimates showed that Silicon Valley Bank's failure cost its Deposit Insurance Fund around $20 billion.
CryptoSlateSignet, the payment network widely used by Web3 businesses, still remains under the FDIC control.
BeincryptoThe sudden string of bank failures over the past week conjured traumatic flashbacks of the 2008 financial crisis for many a banker.
New York Magazine美国监管机构在周末关闭加密友善银行Signature Bank，成为美国历史上规模第三大的银行关闭案。但该行董事会成员突发宣布，公司并未资不抵债，指控遭到美国当局强迫性关闭，且高层被立即撤职。
fx168newsCircle, Ripple, and Pantera Capital are among the companies exposed to SVB, while Coinbase and Paxos have assets stuck on Signature Bank.
cryptopotatoWith Signature Bank also closing down, what banks are left to serve crypto firms?
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