New York Community Bank to buy stake in bankrupt Signature Bank
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New York Community Bank will buy a significant stake in the bankrupt Signature Bank. About it reported on the website of the Federal Deposit Insurance Corporation (FDIC).
As part of this deal, New York Community Bank structures will receive $38.4 billion in assets, including $12.9 billion in loans purchased at a discount for $2.7 billion.
It is specified that from March 20, about 40 former divisions of Signature Bank will open under the control of Flagstar Bank, which is a subsidiary of New York Community Bank. At the same time, the bank’s loans in the amount of $60 billion will remain in receivership and will be sold later.
Signature Bank stopped work on March 13 due to “systemic risks”. As AP notes, Signature Bank has been tackling cryptocurrencies as a potential growth business in recent years. Registered in New York State, the New York Department of Financial Services said in a statement, Signature Bank had about $110.36 billion in assets and approximately $88.59 billion in deposits as of the end of 2022.
This happened after the collapse on March 10 of the American bank Silicon Valley Bank, which ranked 16th among the largest US banks and specialized in working with startups. Western publications noted that the collapse of SVB was the second largest bankruptcy in US history after the closure of Washington Mutual in 2008.
After that, the international rating agency Moody’s lowered outlook for the US banking system from stable to negative. They said that they expect the Fed to increase the rate, and admitted that by the end of 2023 the US economy will fall into a recession, which will put even more pressure on the banking sector.
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