New York Community Bank will purchase a large chunk of the failed Signature Bank’s assets in a $2.7 billion deal, the Federal Deposit Insurance Corp (FDIC) announced Sunday.
The FDIC said that the deal will include New York Community Bank acquiring $38.4 billion worth of Signature Bank’s assets.
The remainder of Signature’s nearly $110 billion in assets, or around $60 billion, will remain in receivership to be sold off at a later date, according to the FDIC.
The bank was a large commercial lender in the tri-state area. It recently expanded its assets to include cryptocurrencies.
Signature Bank’s collapse just over a week ago was the third-largest bank failure in US history, behind the failure of Silicon Valley Bank just 48 hours prior.
The FDIC has assured taxpayers that they will not bear the direct cost of Signature Bank’s failure. Signature’s collapse is expected to cost the deposit insurance fund, which is paid for by bank assessments, around $2.5 billion.