Signature Bank to repon 40 branches under the name of Flagstar Bank starting March 20.
After the shutdown of the Signature bank by The U.S. Federal Deposit Insurance Corporation (FDIC). The bank is set to make its comeback this week under a different name.
As per the news, Signature bank’s deposits and loans are set to be sold to Flagstar bank a subsidiary of New York Community Bancorp. However, the crypto-related deposits will not be part of the deal.
The agreement will witness a shift of $38.4 billion worth of non-crypto deposits and $12.9 billion in loans to be taken over by Flagstar bank under the “purchase and assumption agreement”.
Starting March 20 of this month, 40 branches of Signature bank will repon as Flagstar bank where all the deposits are assumed to be insured until $250,000 insurance limit.
Approx. $4 billion in crypto assets are held by the bank which comprises 4.5% of the total $88.6 billion deposits that Signature Bank had as of Dec. 31, 2022.
FDIC stated that the digital assets will be directly transferred to the depositors’ account who opened a digital banking account.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.
