Flagstar takes over signature, minus his crypto business
Flagstar takes over signature, minus his crypto business
After an unsuccessful first attempt by the FDIC to find a buyer for the Signature Bank, the latter is provided by the tax authority under forced administration and bought by Flagsta Bank - a subsidiary of the New York Community Bancorp, Inc. -
Today we have made an agreement with a subsidiary of the New York Community Bancorp, Inc. Read more ➡️ https://t.co/bshy93lbh. pic.twitter.com/b9rbvytgf7
-fdic (@fdicgov) 19. March 2023
A crypto sale was not necessary
A Reuters report that was later updated to reflect a explanation of the FDIC on this topic stated that unnecessary sources said that every buyer of the Signature Bank would be forced to separate from the crypto industry. The FDIC replied that she only warned potential buyers of the risk that is connected to the trade in crypto and that potential buyers do not have to give up the asset class.
Regardless of whether this is necessary or not, the Flagstar Bank made the decision to exclude cryptocurrency -related customers from the deposits through which it has taken control. The majority of the assets of Signature will initially remain in the hands of the FDIC, which also received a right of equity value in the form of the parent company of the parent company of Flagstar worth around $ 300 million as part of the transaction.
"The former Signature Bank had total deposits of $ 88.6 billion and a total assets of $ 110.4 billion. Today's transaction included the purchase of assets from the Signature Bridge Bank, NA, in the amount of around $ 38.4 billion, including $ 12.9 billion, with a deduction of $ 2.7 Billions were acquired.
Signnet payment network left behind
In view of the fact that only a fraction of the deposits and assets of Signature by Flagstar was acquired, the task of crypto customers could have been considered a coincidence. However, the sale of flagstar in the industry also extends to the company.
Signet, a real-time payment network that was specially developed for crypto-coasting, was provided by the FDIC under forced administration, according to Bloomberg. The sale of the payment network together with other assets and deposits that belonged to the Signature Bank, which has now been dissolved, will be carried out at a later date.
After a week of uncertainty, the 40 branches of the Signature Bank have reopened today. All customers are instructed to do their daily banking transactions as before until they are informed differently by Flagstar Bank.
At the moment, Signet seems to be ready for operation despite bankruptcy management. However, it is unclear how long the payment processing will continue, and Circle has already relocated its company to BNY Mellon.
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