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Cloudy. High around 55F. Winds SW at 5 to 10 mph..
Rain likely. Low 47F. Winds SSW at 5 to 10 mph. Chance of rain 90%. Rainfall near a half an inch.
Updated: March 22, 2023 @ 12:09 pm
NEW YORK, NEW YORK – MARCH 13: People walk by a Manhattan branch of Signature Bank which was closed by bank regulators on Sunday on March 13, 2023 in New York City. The move by the state’s Department of Financial Services seeks to prevent a banking crisis spurred by the failure of Silicon Valley Bank. (Photo by Spencer Platt/Getty Images)
NEW YORK, NEW YORK – MARCH 13: People walk by a Manhattan branch of Signature Bank which was closed by bank regulators on Sunday on March 13, 2023 in New York City. The move by the state’s Department of Financial Services seeks to prevent a banking crisis spurred by the failure of Silicon Valley Bank. (Photo by Spencer Platt/Getty Images)
A subsidiary of New York Community Bancorp has agreed to buy all the loans and deposits of Signature Bank. The institution failed two days after Silicon Valley Bank’s collapse, and global financial markets continue to respond to the biggest bank failure since the Great Recession.
On March 20, Flagstar Bank officially assumed control of Signature Bank’s 40 former branches, the Federal Deposit Insurance Corp. announced Sunday. Signature Bank’s customers will automatically have their deposits transferred to Flagstar Bank. Those deposits are still insured by the FDIC. (If your bank is FDIC-insured, your deposits are insured by the federal government, up to $250,000 per institution and per ownership category.)
Signature had $88.6 billion in deposits, as of December 31, 2022, according to the announcement. Flagstar will assume those deposits, as well as $38.4 billion of Signature’s assets, including $12.9 billion worth of loans from Signature at a discount of $2.7 billion, per the announcement. Signature is the third-largest bank failure by assets in the U.S.
Signature operated a digital banking business with $4 billion in deposits. That business was not acquired by Flagstar; instead, the FDIC will distribute those deposits to Signature’s former customers directly.
Signature’s customers can call 866-744-5463 with any questions, per the announcement. Signature was based in New York City and operated 30 branches in the New York City metropolitan area and several along the West Coast.
The deal follows Silicon Valley Bank’s failure, which took place on March 10 after a bank run. It was the second-biggest bank failure in U.S. history, the biggest being Washington Mutual’s shuttering amid the 2008 financial crisis. The failure of SVB has sent shockwaves across the globe and triggered a number of financial deals intended to stop panic from spreading.
Most recently, the Swiss bank UBS agreed to buy its rival, Credit Suisse, in a deal valued at $3.23 billion. Other deals include the British bank HSBC agreeing to buy Silicon Valley Bank’s British subsidiary, and First Republic Bank receiving a $30 billion deposit infusion from 11 U.S. banking giants, including JPMorgan Chase, Goldman Sachs and Wells Fargo.
Photo by Spencer Platt/Getty Images News via Getty Images
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Cara Smith writes for NerdWallet. Email: cara.smith@nerdwallet.com. Twitter: @https://twitter.com/caramichelles.
The article New York Bank Agrees to Buy Failed Signature Bank originally appeared on NerdWallet.
Originally published on nerdwallet.com, part of the BLOX Digital Content Exchange.
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