The U.S. Federal Deposit Insurance Corp (FDIC) has taken the step of informing Signature Bank’s (SBNY.O) crypto clients that they have an April 5th deadline to close their accounts and move their money.
The deposits in question were not part of a rescue deal arranged with Flagstar Bank, which is a unit of New York Community Bancorp (NYCB.N), earlier this month.
“Flagstar’s bid did not include about $4 billion in deposits related to Signature’s digital-asset business,” an FDIC spokesperson said.
“Those are the deposits we are encouraging customers to move before April 5. If they have not by that day, we will mail checks to the address on record.”
On March 19th, Flagstar entered into an agreement with U.S. regulators to purchase deposits and loans from New York-based Signature Bank.
The FDIC had said that the deal would see Flagstar Bank assume substantially all of Signature Bank’s deposits, some of its loan portfolios and all 40 of its former branches. Roughly $60 billion of Signature Bank’s loans and $4 billion of its deposits would remain with it in receivership.
ARTICLE: PAUL MURDOCH
MANAGING EDITOR: LUKE MOCHERMAN
PHOTO CREDIT: BLOOMBERG
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