FDIC announces an agreement to sell assets from Signature Bank to a subsidiary of New York Community Bancorp.

By Zaid 

With the approval of American regulators, a division of New York Community Bancorp has agreed to buy deposits and loans from the recently shut down Signature Bank in New York.

According to the Federal Deposit Insurance Corporation, the subsidiary, Flagstar Bank,

would take over all 40 of Signature Bank's former branches as well as the majority of its loan portfolios and nearly all of its deposits.

The agency stated that around $60 billion in loans and $4 billion in deposits would still be held by Signature Bank while it was in receivership.

The FDIC is keeping two bankrupt banks under receivership; one of those banks is the subject of the Sunday announcement.

The other, Silicon Valley Bank, a far bigger bank that regulators took over two days prior to Signature, was not mentioned in the statement.

SVB had $209 billion in assets, compared to $110.36 billion for Signature.

The FDIC predicted that the transaction will drain its Deposit Insurance Fund of about $2.5 billion. The agency had previously said that as of the end of 2022, the fund held $128.2 billion.

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