The FDIC has announced in a statement Sunday that Signature Bank, now known as Signature Bridge Bank, will transfer its non-crypto deposits to Flagstar Bank, a subsidiary of New York Community Bancorp, effective Monday.
The move, according to a news release, comes as part of a purchase and assumption agreement between the two financial institutions, allowing for a seamless transition of accounts.
A notable point to highlight is that Flagstar Bank’s acquisition deal did not cover the roughly $4 billion worth of cryptocurrency deposits held by Signature Bank. Instead, the Federal Deposit Insurance Corporation has assured that customers who hold a digital banking account will have their deposits transferred directly to them.
Meanwhile, depositors of Signature Bridge Bank, with the exception of those linked to the digital banking business, will be seamlessly integrated as depositors of Flagstar, with FDIC insurance covering their accounts up to the insured limit.
Today, we entered into an agreement with a subsidiary of New York Community Bancorp, Inc., to purchase and assume deposits and assets out of…
