New York Community Bancorp unit to acquire Signature Bank ‎assets ‎

A subsidiary of New York Community Bancorp agreed with US regulators to purchase deposits and loans from Signature Bank of New York, which closed a week ago.

According to Reuters, the Federal Deposit Insurance Corporation said the deal would see the company, called Flagstar Bank, take over largely all of Signature Bank’s deposits, some of its loan portfolios and all of its 40 former subsidiaries.

The institution said that Signature Bank’s loans, which are close to 60 billion dollars, and its deposits amounting to four billion dollars, will remain within its jurisdiction.

The announcement, which was issued on Sunday, pertains to one of two collapsed banks, over which the institution assumes judicial custody

The statement did not refer to the other bank, Silicon Valley Bank, a much larger bank that entered the trusteeship lawsuit two days before Signature.

Signature had assets of $110.36 billion, while Silicon Valley had assets of $209 billion.

Sources had said earlier on Sunday that the corporation would re-bid its Silicon Valley assets after failing to attract buyers for the entire bank.

Under the Signature Bank assets arrangement, Flagstar will buy $12.9 billion worth of loans at a $2.7 billion discount.

The Foundation estimates that the deal will cost its Deposit Insurance Fund about $2.5 billion.