Part of the assets of the collapsed Signature Bank came under the control of its competitor

21 Mar Part of the assets of the collapsed Signature Bank came under the control of its competitor

Four dozen branches of Signature Bank will start operating from Monday under the control of Flagstar Bank, which bought almost all the deposits and part of the loan portfolio of the bankrupt US bank, the FDIC regulator, the Federal Deposit Insurance Corporation, said.

The deal on Sunday brought $38.4 billion worth of Signature Bank’s assets out of $110.4 billion under the control of Flagstar Bank, a subsidiary of New York Community Bancorp.

“Forty former branches of Signature Bank will operate under the control of…Flagstar Bank, N.A. from Monday, March 20, 2023,” the release said.

The deal does not include $4 billion in deposits and $60 billion in loans, which remain at the disposal of the FDIC.

Authorities closed the New York Signature Bank due to “systemic risks” after California’s Silicon Valley Bank, one of the twenty largest US commercial banks, went bankrupt. The problems of the American banking system are associated with an increase in the rate of the Federal Reserve System, which turned into a depreciation of assets on the balance sheets of many financial institutions.