Updated Mar 19, 2023 - Economy

New York Community Bancorp to take over failed Signature Bank

Federal Deposit Insurance Corporation (FDIC) building is seen in Virginia, United States on March 17.

A Federal Deposit Insurance Corporation (FDIC) building in Virginia. Photo: Celal Gunes/Anadolu Agency via Getty Images

New York Community Bancorp is taking over the failed Signature Bank, which was seized by the Federal Deposit Insurance Corporation (FDIC) a week ago.

Why it matters: Signature was one of two bank failures — along with Silicon Valley Bank — that threatened to kick off a broader crisis of confidence in the U.S. banking system. The FDIC has been looking to broker sales of both to stronger financial institutions.

State of play: New York Community Bancorp will assume all the deposits and some of the loan portfolios held by the former Signature, according to an FDIC statement on Sunday.

  • Signature's 40 branches will begin operating under the Flagstar Bank name from Monday.

Background: New York Community Bancorp just acquired Flagstar in December, making it the 24th largest regional bank in the country, according to its press release announcing the deal closure.

Worth noting: The FDIC said it estimates that Signature Bank's failure will cost its Deposit Insurance Fund about $2.5 billion.

Editor's note: This article has been updated with additional details throughout.

Go deeper