This Monday, the 40 branches that Signature Bank had will operate as Flagstar Bank, this after the subsidiary of New York Community Bancorp reached an agreement to acquire the majority of the entity after its collapse and intervention by the authorities.
As detailed by the United States Federal Deposit Insurance Corporation (FDIC), Flagstar Bank took over almost all of the bank’s depositsas well as a part of its loan portfolio.
Through a statement, the agency indicated that most of the clients will be automatically transferred to Flagstar Bank.
However, he clarified that the deal does not include about $4 billion in deposits that were part of Signature Bank’s digital banking business. The latter will be the task of the FDIC, which will be in charge of dealing with the requests of these clients.
The purchase of Signature Bank assets was sealed for $38.4 billion.
While, FDIC will get up to $300 million from New York Community Bancorpas well as about 60,000 million in loans from Signature Bank, which will allow it to sell in the future.
At the end of last year, Signature Bank had approximately $88.6 billion in deposits and total assets of approximately $110.4 billion.
