New York Community Bank to buy bankrupt Signature Bank

New York Community Bank will acquire the majority of the assets of Signature Bank, which was closed by regulators after the bankruptcy of Silicon Valley Bank. About it informed US Federal Deposit Insurance Corporation.

The deal involves the transfer of $38.4 billion in assets to New York Community Bank, including $12.9 billion in loans purchased at a $2.7 billion discount. Approximately $60 billion of assets will remain in receivership for use by the deposit insurance corporation. New York Community Bank will take control of 40 former branches of Signature Bank.

Signature Bank became the second bank to fail as a result of the crisis. It became the third largest bank failure in US history. The New York-based lender has been a major tri-state lender but has focused on cryptocurrencies in recent years. This became one of the reasons for the anxiety of depositors after went bankrupt Silicon Valley Bank focused on startups. The New York state regulator closed Signature Bank on March 12 to avoid systemic risks.

The fate of the larger Silicon Valley Bank has not yet been reported. By information Bloomberg, it will be sold in parts. Having experienced problems during the crisis, one of the largest banks in Switzerland, Credit Suisse, will be sold to the largest bank in the country, UBS.

On the development of the banking crisis – in the material “Kommersant” “According to the Zurich account”.

Leonid Uvarchev