The cost of the intervention for the Deposit Guarantee Fund is estimated at around 2,500 million dollars

MADRID, 20 Mar. (EUROPA PRESS) -

Flagstar Bank, a wholly owned subsidiary of New York Community Bancorp (NYCB) has reached an agreement with the Federal Deposit Insurance Corporation (FDIC) to acquire nearly all of the deposits and a portion of the loan portfolio of the failed Signature Bank, intervened by the US financial authorities a week ago.

Thus, Signature Bank depositors will automatically become depositors of the transferee institution. "All deposits assumed by Flagstar Bank will continue to be insured by the FDIC up to the limit of the insurance," the FDIC explained.

The institution has specified that Flagstar Bank did not include approximately 4,000 million dollars (3,750 million euros) in deposits related to the digital banking business of the former Signature Bank, so the FDIC will provide these deposits directly to customers whose accounts are associated with the digital banking business.

Also, starting this Monday, all 40 Signature Bank branches will operate under the Flagstar Bank brand and will operate with normal business hours.

As of December 31, 2022, Signature Bank had deposits for a total amount of 88,600 million dollars (83,041 million euros) and total assets of 110,400 million dollars (103,474 million euros).

The announced transaction includes the purchase of approximately 38.4 billion dollars (35.990 million euros) of Signature Bank assets, including loans of 12.9 billion dollars (12.090 million euros) acquired at a discount of 2.7 billion dollars (2.53 billion euro).

In this way, around 60,000 million dollars (56,236 million euros) in loans will remain in the judicial administration for their subsequent disposition by the FDIC.

The FDIC estimates that the cost of Signature Bank's bankruptcy for its Deposit Insurance Fund is approximately 2,500 million dollars (2,343 million euros).