Signature Bank sold to Flagstar Bank – minus crypto assets

Flagstar Bank has agreed to acquire Signature Bank in a deal that excludes the bank’s crypto deposits. The decision is prompting some commentators to again blame the US government To push an anti-crypto agenda

The Federal Deposit Insurance Corporation (FDIC) announced that it has approved Flagstar Bank, New York Community Bancorp, Inc. entered into a purchase agreement with a subsidiary of The deal covers “substantially all deposit and certain loan portfolios” of the signatory bank.

But $4 billion in deposits from Signature Bank’s crypto-related businesses are not part of the deal. Instead, the FDIC said it would return deposits directly to customers.

Signet under FDIC receivership

Along with the deposits from Web3 businesses, the deal also excludes Signature Bank’s payments network, Signet. It was used by many Web3 businesses, such as Circle, the issuer of the stablecoin USDC.

According to Bloomberg, an FDIC spokesperson confirmed that Signet will remain under the agency’s control and “subject to subsequent arrangements.”

Reuters reported that regulators told bidders in Signature Bank to “leave all crypto business”. Later, the FDIC stated that this was untrue. Now, venture capitalist Nick Carter believes that That the FDIC lied and Reuters was actually right. Carter also has a strong opinion that regulators have launched Operation Choke Point 2.0 to cut off banking access to crypto businesses.

signature bank reopens

On Monday, 40 Signature Bank branches reopened under Flagstar ownership. A subsidiary of New York Community Bancorp purchased $38.4 billion in assets and $12.9 billion in debt at a discount of $2.7 billion. The deal also excludes nearly $60 billion in debt that remains under FDIC receivership. As part of the settlement, the FDIC received common stock with a potential value of up to $300 million.

The Federal Reserve closed Signature Bank on March 12 to “protect the US economy”. Conversely, some believe the shutdown was for political reasons while the bank was insolvent.

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BeInCrypto has reached out to the company or individual involved in the story for an official statement regarding the recent developments, but has not yet received a response.

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