Flagstar Bank buys Signature’s assets without the cryptocurrency part of the business
$4 billion related to the crypto business will remain under the FDIC’s control
20.03.2023 - 11:30
521
3 min
0
What’s new? The US Federal Deposit Insurance Corporation (FDIC) sold the business of the previously closed Signature Bank, except for the cryptocurrency and digital assets part. Starting March 20, 40 branches of the bank will be taken over by Flagstar Bank, a subsidiary of New York Community Bancorp. As for the $4 billion that was not part of the deal, the FDIC plans to make the funds available directly to owners.
Details of the deal. Flagstar bought $38,4 billion worth of Signature’s assets, which includes $12,9 billion in loans that the bank bought at a discount of $2,7 billion. About $60 billion in loans will remain in the FDIC’s disposition. The agency estimated the cost of Signature Bank’s bankruptcy to its Deposit Insurance Fund at about $2,5 billion. The exact value will be determined after the FDIC completes its receivership.
Deposits and part of Signature’s loan portfolios that are not related to the crypto business will go to the new owner. In this, Signature’s former customers will automatically become Flagstar depositors, and their funds will be insured by the FDIC up to the insurance limit.
As of December 31, 2022, Signature had $88,6 billion in total deposits and $110,4 billion in total assets.
Signature situation. On March 12, the bank was taken over by the New York Department of Financial Services (NYDFS). According to the regulator, it was closed because of a significant crisis of confidence in its management. However, Signature board member Barney Frank believes the NYDFS closed the bank to demonstrate the toxicity of cryptocurrencies.
Santiment analysts record the rapid growth of the BTC network since the beginning of the year
The number of bitcoin addresses is increasing dramatically, despite the volatility of the crypto market
The FDIC later denied a Reuters report that Signature’s buyer would have to give up the bank’s crypto business. The bankruptcy proceeding will end after all of the bank’s assets are sold and claims against it are reviewed and the terms of the bid from the buyer are determined.
Useful material?
Telegram 
Twitter Technologies
Network fees will be integrated into the cost of swaps
Nov 22, 2024
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Cryptocurrency rates
-
Bitcoin
$98 705
BTC
+1.5%
-
Ethereum
$3 303.6
ETH
-0.8%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.47
XRP
+32.43%
-
Dogecoin
$0.399649
DOGE
+4.06%
-
Cardano
$0.957583
ADA
+21.58%
-
Bitcoin Cash
$485.54
BCH
+0.72%
-
Polkadot
$6.33
DOT
+8.94%
-
Stellar XLM
$0.301347
XLM
+24.89%
-
Litecoin
$89.92
LTC
+1.6%