Flagstar Bank, a subsidiary of New York Community Bancorp, has reached an agreement to acquire the majority of SignatureBank after its collapse and the intervention of the authorities.
Starting this Monday, 40 Signature branches will operate as Flagstar Bankwhich was done with virtually all of the institution’s deposits and part of its loan portfolio, as announced late Sunday by the Federal Deposit Insurance Corporation (FDIC).
The FDIC, which took control of the bank this month after it also intervened in Bank of Silicon Valley (SVB), explains in a statement that most customers will be automatically transferred to Flagstar Bank, an institution with a large mortgage portfolio.
Meanwhile, the operation does not include about $4 billion in deposits that were part of the business. digital banking Signatures and that they will remain in the hands of the FDIC, which will be responsible for reviewing requests from these clients.
The purchase includes a total acquisition of approximately $38.400 million in resources Signatures, including loans worth about $12.9 billion at a discounted price of $2.7 billion, the announcement said.
Except FDIC receive up to $300 million from New York Community Bankparent company Flagstar, and will keep about $60 billion in loans from Signature, which it may still sell in the future.
The institution has stated that it expects the final cost of the collapse of the Signature, which guarantee fund will be about $2.5 billion.
At the end of 2022, Signature had about $88.6 billion in deposits and total assets of about $110.4 billion, about half that of SVB, for which the FDIC has yet to find a buyer.
EFE
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
