A subsidiary of "New York Community Bancorp" has entered into an agreement with U.S. regulators to purchase the deposits and loans from "Signature Bank" in New York, which was closed a week ago.
The Federal Deposit Insurance Corporation (FDIC) stated that the deal will see the company, branded as Flagstar Bank, assume nearly all of Signature Bank's deposits, some of its loan portfolios, and all 40 of its former branches.
The FDIC added that Signature Bank's loans, which amount to nearly $60 billion, and its $4 billion in deposits will remain under its receivership. The announcement made on Sunday pertains to one of two failed banks currently under FDIC receivership.
The statement did not mention the other bank, Silicon Valley Bank, which is much larger and entered receivership two days before Signature Bank. Signature had assets of $110.36 billion, while Silicon Valley Bank had assets of $209 billion. Under the arrangement concerning the bank's assets, Flagstar will purchase loans valued at $12.9 billion at a discount of $2.7 billion. The FDIC estimates that the deal will cost its deposit insurance fund approximately $2.5 billion.
