Signature Bank Bought By New York Community Bancorp After Sudden Collapse

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The crypto-friendly bank failed last week, amplifying fears of a banking crisis.

New York Community Bancorp has acquired Signature Bank and assumed most of its deposits, the Federal Deposit Insurance Corporation

Sunday evening, one week after crypto-friendly Signature Bank and tech-focused Silicon Valley Bank both collapsed in the span of a few days—sending shockwaves through the U.S. financial system.Copyright 2023 The Associated Press. All rights reserved.New York Community Bancorp’s subsidiary Flagstar Bank will operate Signature Bank’s 40 branches starting Monday, and the vast majority of Signature’s $88.

The company also bought $38.4 billion worth of loans and other assets previously held by Signature, though some $60 billion in loans will remain with the FDIC, which took over Signature after it was shut down by New York state regulators last weekend. The FDIC says Signature’s collapse will cost the federal Deposit Insurance Fund—which is funded by payments from banks—roughly $2.5 billion.The collapse of New York-based Signature Bank—which had $110 billion in assets last year—marked the third-largest bank failure in U.S. history, after Washington Mutual’s failure in 2008 and Silicon Valley Bank’s failure just two days before Signature was shut down.

 

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