New York Community Bank buys assets of Signature Bank. FDIC estimates the bank's failure will cost insurance fund $2.5B
New York Community Bank buys assets of Signature Bank. FDIC estimates the bank's failure will cost insurance fund $2.5B
By KEN SWEET
Published - Mar 19, 2023, 08:48 PM ET
Last Updated - Jun 22, 2023, 03:26 PM EDT
NEW YORK (AP) — New York Community Bank has agreed to buy a significant chunk of the failed Signature Bank in a $2.7 billion deal, the Federal Deposit Insurance Corp. said late Sunday.
The 40 branches of Signature Bank will become Flagstar Bank, starting Monday. Flagstar is one of New York Community Bank's subsidiaries. The deal will include the purchase of $38.4 billion in Signature Bank's assets, a little more than a third of Signature's total when the bank failed a week ago.
The FDIC said $60 billion in Signature Bank's loans will remain in receivership and are expected to be sold off in time.
