New York Community Bancorp is taking over the failed Signature Bank, which was seized by the Federal Deposit Insurance Corporation (FDIC) a week ago.
Why it matters: Signature was one of two bank failures — along with Silicon Valley Bank — that threatened to kick off a broader crisis of confidence in the U.S. banking system. The FDIC has been looking to broker sales of both to stronger financial institutions.
State of play: New York Community Bancorp will assume all the deposits and some of the loan portfolios held by the former Signature, according to an FDIC statement on Sunday.
- Signature's 40 branches will begin operating under the Flagstar Bank name from Monday.
Background: New York Community Bancorp just acquired Flagstar in December, making it the 24th largest regional bank in the country, according to its press release announcing the deal closure.
Worth noting: The FDIC said it estimates that Signature Bank's failure will cost its Deposit Insurance Fund about $2.5 billion.
Editor's note: This article has been updated with additional details throughout.
