New York Community Bank Will Purchase Bankrupted Signature Bank

According to the news a $2.7 billion deal would see New York Community Bank purchase a significant portion of Signature Bank, a prominent tristate lender.

The Federal Deposit Insurance Corporation stated on Sunday that New York Community Bank will acquire Signature Bank's assets worth $38.4 billion, or roughly one-third of its total assets of $110 billion.

The FDIC said that Signature Bank's remaining $60 billion in loans will remain in receivership until they are finally sold off.

UBS will acquire rival Credit Suisse in a $3.3 billion transaction to resolve the crisis.

Less than 48 hours after Silicon Valley Bank failed, a Manhattan-based bank fell, sending shockwaves across the stock market. Signature Bank, like Silicon Valley Bank, has just expanded into cryptocurrencies. Depositors were worried about the prospects of Signature Bank after the California bank failed to owe to its reliance on cryptocurrency and a large amount of uninsured deposits.

Signature Bank in New York is closed by regulators, marking the third-largest bank collapse in American history.

Signature became the third-largest bank failure in American history this week as a consequence of a "similar systemic risk exception," according to a joint statement made by the US Treasury, the Federal Reserve, and the Federal Deposit Insurance Corp. Silicon Valley saw the second-largest bank collapse.

As a result of Signature's failure, the deposit insurance fund, which is funded by bank assessments, is likely to lose $2.5 billion.

From Monday, the 40 Signature Bank branches will be renamed Flagstar Bank, a subsidiary of New York Community Bank.

Moody's downgrades Signature Bank to junk status following the collapse of SVB; six additional lenders are under review.