Flagstar Bank, a subsidiary of New York Community Bancorp, has agreed to purchase $38.4 billion worth of non-cryptocurrency-related deposits and $12.9 billion in loans from Signature Bank, only a week after its collapse.
The United States Federal Deposit Insurance Corporation (FDIC) announced the agreement on March 19, which will see Flagstar Bank take over Signature Bank’s 40 branches, and all deposits assumed by Flagstar Bank will continue to be insured up until the $250,000 insurance limit.
However, the deal did not include approximately $4 billion of deposits held by Signature Bank’s digital assets business. Instead, the FDIC confirmed that it would transfer these deposits directly to customers who opened a digital banking account.
Coinbase, Celsius, and Paxos are three crypto firms that recently confirmed having some exposure to Signature Bank, and Castle Island Ventures partner Nic Carter believes the latest announcement shows that the FDIC “lied” in its response to Reuters, who had suggested that any buyer of Signature would be required to divest crypto activities as part of a potential rescue plan.
