#Flagstar Bank has agreed to buy #SignatureBank in a deal that does not include the bank's #cryptocurrency deposits. Several pundits have accused the US government of advancing an anti-crypto agenda as a result of the decision.

The Federal Deposit Insurance Corporation (FDIC) announced a purchase deal with Flagstar Bank, a subsidiary of New York Community Bancorp, Inc. The Signature bank's "essentially all deposits and some loan portfolios" are included in the transaction.

Nevertheless, the acquisition excludes $4 billion in deposits from Signature Bank's crypto-related businesses. Instead, the FDIC stated that the deposits would be returned to clients immediately.

FDIC Receivership Signet

Together with Web3 business deposits, the agreement excludes Signature Bank's payment network, Signet. It was used by many Web3 businesses, including Circle, the creator of the stablecoin USDC.

An FDIC representative confirmed to Bloomberg that Signet will stay under the agency's authority and "will be subject to later arrangement."

Reuters report that the regulators requested the bidders to "give up all the #crypto operations" at the Signature bank. The FDIC later stated that this was false. Now, venture capitalist Nic Carter believes that the FDIC lied and that Reuters was correct. Carter is also certain that regulators have launched Operation Choke Point 2.0 in order to restrict crypto companies' access to banking.

The Signature Bank Has Reopened

Flagstar took over ownership of 40 Signature Bank locations on Monday. A subsidiary of New York Community Bancorp purchased $38.4 billion in assets and $12.9 billion in loans at a $2.7 billion discount. The agreement also excludes around $60 billion in debts that are still under #FDIC receivership. The FDIC acquired common shares with a potential value of up to $300 million as part of the arrangement.

The Federal Reserve liquidated the Signature bank on March 12 to "defend the US economy," however some believe the closure was for political purposes because the bank was solvent.

In a recent development in the banking industry, the Federal Deposit Insurance Corporation (FDIC) has entered into a purchase and assumption agreement for substantially all deposits and certain loan portfolios of Signature Bridge Bank, National Association, by Flagstar Bank, National Association, a wholly owned subsidiary of New York Community Bancorp, Inc.

This acquisition was completed on Monday, March 20, 2023, with the 40 former branches of Signature Bank set to operate under New York Community Bancorp’s Flagstar Bank, N.A.

Depositors of Signature Bridge Bank, N.A., other than cash depositors related to the digital-asset banking businesses, will automatically become depositors of the assuming institution. All deposits assumed by Flagstar Bank, N.A., will continue to be insured by the FDIC up to the insurance limit. The FDIC estimates the cost of the failure of Signature Bank to its Deposit Insurance Fund to be approximately $2.5 billion. The exact cost will be determined when the FDIC terminates the receivership.

This acquisition was necessitated by the closure of Signature Bank, New York, New York, by the New York State Department of Financial Services. Signature Bridge Bank, N.A. was created by the FDIC on March 12, 2023, to take over the operations of Signature Bank.

As of December 31, 2022, the former Signature Bank had total deposits of $88.6 billion and total assets of $110.4 billion. Today’s transaction included the purchase of about $38.4 billion of Signature Bridge Bank, N.A.’s assets, including loans of $12.9 billion purchased at a discount of $2.7 billion. Approximately $60 billion in loans will remain in the receivership for later disposition by the FDIC.

The acquisition by Flagstar Bank, N.A. did not include approximately $4 billion of deposits related to the former Signature Bank’s digital-assets banking business. The FDIC will provide these deposits directly to customers whose accounts are associated with the digital-asset banking businesses. Questions may be directed to (866) 744-5463.

As part of the agreement, the FDIC received equity appreciation rights in New York Community Bancorp, Inc. common stock with a potential value of up to $300 million. This acquisition has put the FDIC in a better position to manage the receivership of Signature Bank and recover some of the costs incurred by the failure of the bank.

The acquiring institution, Flagstar Bank, N.A., has assured customers of Signature Bridge Bank, N.A. that their banking services will not be disrupted and that they should continue to use their current branch until they receive notice from the assuming institution that full-service banking is available at branches of Flagstar Bank, N.A. This acquisition has put the FDIC in a better position to manage the receivership of Signature Bank and recover some of the costs incurred by the failure of the bank.

#FDIC #SignatureBank #Flagstar #SVB #azcoinnews

This article was republished from azcoinnews.com