Signature Bank deposits, branches sold to Flagstar, crypto not included

Only a week aft its collapse, Signature Bank’s deposits and loans are acceptable to beryllium sold to Flagstar Bank, a subsidiary of New York Community Bancorp — crypto-related deposits however, volition not beryllium portion of the deal.

The United States Federal Deposit Insurance Corporation (FDIC) announced the statement connected March 19, which volition spot $38.4 cardinal worthy of non-cryptocurrency-related deposits and $12.9 cardinal successful loans taken implicit by the Michigan-based slope nether a “purchase and presumption agreement."

From March 20, Signature’s Bank 40 branches volition statesman operating arsenic Flagstar Bank, wherever each deposits assumed by Flagstar Bank volition proceed to beryllium insured up until the $250,000 security limit.

Today, we entered into an statement with a subsidiary of New York Community Bancorp, Inc., to acquisition and presume deposits and assets retired of Signature Bridge Bank. Read much ➡️ https://t.co/bSshY93lBh. pic.twitter.com/b9RBvYtGF7

— FDIC (@FDICgov) March 19, 2023

The takeover woody from Flagstar Bank did not see astir $4 cardinal of deposits held by Signature Bank's integer assets business. Instead, the FDIC confirmed that it would transportation these deposits straight to customers who opened a integer banking account, stating:

“The FDIC volition supply these deposits straight to customers whose accounts are associated with the integer banking business.”

The $4 cardinal fig amounts to 4.5% of the full $88.6 cardinal deposits that Signature Bank had arsenic of Dec. 31.

Coinbase, Celsius and Paxos are 3 crypto firms that precocious confirmed having immoderate vulnerability to Signature Bank.

Related: US lawmaker accuses FDIC of utilizing banking instability to onslaught crypto

Last week, a March 17 study from Reuters cited 2 sources who suggested that immoderate purchaser of Signature would beryllium required to divest crypto activities arsenic portion of a imaginable rescue plan.

At the time, an FDIC spokesperson denied this, noting that the bureau did not necessitate crypto divestment arsenic portion of immoderate sale.

However, Castle Island Ventures spouse Nic Carter believes the latest announcement shows that the FDIC “lied” successful its effect to Reuters.

Wow. Wow. the FDIC lied and Reuters was correct. I'm shocked. Shocked I archer you. This is the aforesaid FDIC seat who presided implicit Choke Point 1.0 by the way. pic.twitter.com/CHu8MgSW4X

— nic carter (@nic__carter) March 20, 2023

The takeover comes aft Signature Bridge Bank was created by the FDIC connected March 12 aft the New York Department of Financial Services (NYDFS) closed the slope and appointed the FDIC arsenic its receiver.