NYCB Discloses Signature Bank's Total Fair Value Was $37.8 Billion

Core Insights - Signature Bank's failure was attributed to poor management and inadequate risk policing practices, which left it vulnerable to the contagion effects from the collapses of Silvergate Bank and Silicon Valley Bank [11] - The FDIC identified the bank's involvement in the digital asset sector, particularly after the downfall of FTX, as a significant factor in its failure [3][2] - New York Community Bancorp (NYCB) acquired assets from Signature Bank, including customer deposits and loans, with a total estimated fair value of $37.8 billion [4][10] Group 1: Signature Bank's Collapse - Signature Bank collapsed shortly after the failure of Silicon Valley Bank and the self-liquidation announcement by Silvergate Bank [5] - The bank had previously focused on commercial real estate but shifted to accepting cryptocurrency deposits in 2018, establishing relationships with major crypto players [9] - Following the seizure of Silicon Valley Bank, Signature Bank faced a crisis of confidence, exacerbated by its exposure to the struggling crypto industry [6] Group 2: Acquisition by NYCB - NYCB's wholly-owned subsidiary, Flagstar Bank, assumed liabilities with an estimated fair value of $35.7 billion, including $33.5 billion in customer deposits [1] - The acquisition occurred in March 2023, just one week after the FDIC took control of Signature Bank [8] - The assets acquired included $24.9 billion in cash and cash equivalents and $11.7 billion in loans and leases [10]