New York Community Bank agrees to buy failed Signature Bank

New York Community Bank

New York Community Bank has agreed to buy a majority stake in bankrupt Signature Bank in a $2.7 billion deal, the Federal Deposit Insurance Corp. said.

Community Bank

40 floors of Signature Bank will become Flagstar Bank from Monday. Flagstar is a subsidiary of New York Community Bank. The deal will include the purchase of $38.4 billion in assets from Signature Bank, more than a third of Signature’s total assets after the bank failed a week ago. The FDIC said that $60 billion in loans from Signature Bank will remain in default and will need to be sold early.

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Signature Bank was the second bank to fail in this banking crisis, about 48 hours after Silicon Valley Bank failed. New York-based Signature used to be a major commercial lender in the tri-state area, but in recent years has moved into cryptocurrencies as a potential business.

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After the failure of Silicon Valley Bank, investors were concerned about the health of Signature Bank due to its large amount of uninsured deposits and its exposure to crypto and other loans focused on technology. At control times closed her, signature was the third bank’s final bank in the US history.

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