Following an unsuccessful first attempt by the FDIC to find a buyer for Signature Bank, the latter placed in receivership by the fiscal authority will be bought out by Flagsta Bank – a subsidiary of New York Community Bancorp, Inc.
A Reuters report, which was later updated to reflect a statement on the matter from the FDIC, said unnamed sources stated that any buyer of Signature Bank would be forced to divest from the crypto industry. The FDIC responded that they merely warned potential buyers of the risk drawn from dealing with crypto and did not require potential buyers to ditch the asset class.
Whether required or not, Flagstar Bank has made the decision to exclude cryptocurrency-related customers from the deposits it took control of. Most of Signature’s assets will, for now, remain in the hands of the FDIC, who also received equity appreciation right in the form of common stock in Flagstar’s parent company worth about $300 million as part of the deal.
(By Jordan Lyanchev)
Related News:
New York Community Bancorp Unit to Assume Signature Bank Deposits, FDIC says
FDIC Denies Report Signature Bank Purchaser Must Divest Crypto
Congress Announces March 29 Hearing Into Failures of SVB and Signature Bank
Reuters Report That Any Bank Bidding for Signature “Must Give Up All Crypto Business”
All Comments