New York Community Bank decided to buy major stake of failed Signature Bank

Agency. New York Community Bank has decided to buy a major stake in the failed Signature Bank for $2.7 billion (Rs 22.29 thousand crore). The Federal Deposit Insurance Corporation (FDIC) has given this information on Sunday (March 19).

From Monday (March 20), 40 branches of Signature Bank will be known as Flagstar Bank. Flagstar is one of the subsidiaries of New York Community Bank. This deal will also include the purchase of Signature Bank’s assets worth $ 38.4 billion i.e. Rs 3.17 lakh crore.

The FDIC said that Signature Bank’s loan of $60 billion i.e. Rs 4.95 lakh crore is also secured. Information about the failure of Signature Bank was revealed 48 hours after the closure of Silicon Valley Bank. Signature Bank is the second bank to be closed in the banking crisis.

Signature Bank is also a large commercial lender in the tristate area based in New York. However, in recent years the bank got involved in cryptocurrencies. This is the reason why the bank has suffered huge losses.

On March 10, 2023, America’s 16th largest Silicon Valley bank drowned. Just two days later, on March 12, the news of the sinking of America’s Signature Bank came to the fore. After this, the assets of these two banks were taken under the control of the American regulator. Investors around the world have lost more than Rs 38 lakh crore due to the collapse of Silicon Valley Bank alone. 21 Indian companies have also been badly affected by this.