scorecardresearch

US FDIC tells Signature Bank’s crypto clients to close accounts by April 5

Reportedly, the questioned deposits didn’t include the deal arranged with Flagstar Bank

Going by Signature Bank’s official website, it’s an American commercial bank
Going by Signature Bank’s official website, it’s an American commercial bank

The U.S. Federal Deposit Insurance Corp (FDIC) has informed collapsed lender Signature Bank’s crypto clients that they have until April 5 to close their accounts and move their money. The deposits in question were not part of a rescue deal arranged with Flagstar Bank, a unit of New York Community Bancorp, 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.” Flagstar on March 19 entered into an agreement with U.S. regulators to buy 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.

Follow us on TwitterFacebookLinkedIn

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 29-03-2023 at 10:41 IST