Updated Mar 19, 2023 - Economy

New York Community Bancorp to take over failed Signature Bank

Kate Marino

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.

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New York Community Bancorp to take over failed Signature Bank

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