New York Community Bank to take over failed Signature Bank in $2.7B deal

Starting Monday, the 40 branches of Signature Bank will become Flagstar Bank.

News 12 Staff

Mar 20, 2023, 3:14 AM

Updated 434 days ago

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New York Community Bank is set to take over a large part of the failed Signature Bank in a $2.7 billion deal.
Starting Monday, the 40 branches of Signature Bank will become Flagstar Bank.
The move comes after banking giant UBS agreed to buy Credit Suisse.
Experts told News 12 Long Island that the deals are all part of an effort to calm some of banking turmoil.
Alan Bruckner, of Bethpage, feels alarmed after two banks collapsed and another is trying to survive.
“It’s definitely a concern and you just keep hearing one thing after another about things falling apart around us. It’s pretty scary,” Bruckner said.
He is shaken after the fall of SVB Bank in California and Signature Bank here in New York.
Switzerland’s President Alain Berset announced Sunday that UBS Bank will acquire smaller rival Credit Suisse for $3.2 billion to avoid further global banking market turmoil.
“The takeover of Credit Suisse by UBS is the best solution for restoring the confidence,” Berset said. However, this deal and the U.S. government taking over SVB Bank and Signature Bank is not comforting to financial experts like Mitch Goldberg, of ClientFirst Strategy.
“You would think that they would ease the concerns of investors and depositors. It’s having the opposite effect,” Goldberg said.
Lawmakers in Washington are also trying to figure out what happened and the next steps.
“We also need to understand the underlying causes of the collapse of these banks and we’re going to get to that," said North Carolina Rep. Patrick McHenry.
Sen. Chris Van Hollen from Maryland said that he wants accountability.
“To see them sell a lot of stock, make a big profit on the eve of the collapse of their own bank, which is causing all this ripple effect throughout some of the other banks, we need to make sure they're held accountable,” Hollen said.
Goldberg said most people should not panic though.
“What I think people need to do, is check with their FDIC, OK? Every account owner is insured for $250,000 of their deposit,” he said, adding that it is $500,000 for joint accounts. He recommends to anyone with more money in their accounts to talk to their banker.


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