Banking Crisis

Signature’s Deposits, Loans Assumed by NY Community Bancorp

  • Bank assumes $38 billion in assets, $36 billion in liabilities
  • The FDIC gets an equity kicker that could reach $300 million
2008 Financial Crisis Deja Vu

Source: Bloomberg

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Signature Bank’s deposits and some of its loans have been taken over by a unit of New York Community Bancorp, a move that could help calm some of the turmoil that has engulfed US regional banks.

NYCB’s Flagstar Bank of Hicksville, New York, agreed to purchase $38 billion of assets, including $25 billion in cash and about $13 billion in loans, from the Federal Deposit Insurance Corp., the lender said in a statement. It also assumed liabilities of about $36 billion, including $34 billion in deposits.