The FDIC has announced that Flagstar Bank has acquired Signature Bank’s 40 former bank branches and its assets, except for crypto operations.
The FDIC’s press release on Monday stated that Flagstar Bank will not assume any of Signature Bank’s cryptocurrency depositors or clients. “Flagstar Bank’s bid did not include approximately $4 billion of deposits related to the former Signature Bank’s digital banking business,” the FDIC announced. The agency also said that it will provide the deposits directly to customers associated with the digital banking business.
The FDIC’s announcement on Monday sparked a discussion on social media, with some speculating that a conspiracy theory had been proven true. Caitlin Long, founder and CEO of Custodia Bank,about the news: “They indeed kept out the crypto deposits. Investigation time.” In addition to Flagstar not assuming Signature Bank’s cryptocurrency deposits, the FDIC also noted that the government anticipates losses.
The FDIC estimated the cost of Signature Bank’s failure to its Deposit Insurance Fund to be around $2.5 billion, according to the agency’s announcement. “The exact cost will be determined when the FDIC terminates the receivership.” In addition, the FDIC for Silicon Valley Bank on Monday. Bids for SVB’s private bank are due on March 22, 2023, and bids for the bridge bank, Silicon Valley Bridge Bank, N.A., will be due two days later.
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