New York Community Bank Subsidiary to Buy Failed Signature Bank in $2.7 Billion Deal
A subsidiary of New York Community Bank will purchase a significant portion of failed Signature Bank under a $2.7 billion deal with U.S. regulators, the Federal Deposit Insurance Corporation (FDIC) announced on March 19.
The FDIC, an independent agency created by Congress to maintain a stable financial system, said that Sunday’s deal will see the 40 former branches of New York-based Signature Bank become Flagstar Bank, beginning March 20.
Depositors of Signature Bridge Bank—excluding those related to the digital banking business—will automatically become depositors of Flagstar Bank.
Signature Bridge Bank was created by the FDIC earlier this month to take over Signature Bank’s operations after it was closed by New York state regulators in the wake of its collapse….