#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.