FDIC sells Signature Bank deposits to Flagstar, crypto not included
Only a week after its collapse, Signature Bank’s deposits and loans are set to be sold to Flagstar Bank, a subsidiary of New York Community Bancorp — crypto-related deposits however, will not be part of the deal.
The United States Federal Deposit Insurance Corporation (FDIC) announced the agreement on March 19, which will see $38.4 billion worth of non-cryptocurrency-related deposits and $12.9 billion in loans taken over by the Michigan-based bank under a “purchase and assumption agreement."
From March 20, Signature’s Bank 40 branches will begin operating as Flagstar Bank, where all deposits assumed by Flagstar Bank will continue to be insured up until the $250,000 insurance limit.
Today, we entered into an agreement with a subsidiary of New York Community Bancorp, Inc., to purchase and assume deposits and assets out of Signature Bridge Bank. Read more ➡️ https://t.co/bSshY93lBh. pic.twitter.com/b9RBvYtGF7
The takeover deal from Flagstar Bank did not include approximately $4 billion of deposits held by Signature Bank's digital assets business. Instead, the FDIC confirmed that it would transfer these deposits directly to customers who opened a digital banking account, stating:
The $4 billion figure amounts to 4.5% of the total $88.6 billion deposits that Signature Bank had as of Dec. 31.
Coinbase, Celsius and Paxos are three crypto firms that recently confirmed having some exposure to Signature Bank.
Related: US lawmaker accuses FDIC of using banking instability to attack crypto
Last week, a March 17 report from Reuters cited two sources who suggested that any buyer of Signature would be required to divest crypto activities as part of a potential rescue plan.
At the time, an FDIC spokesperson denied this, noting that
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