/cloudfront-us-east-2.images.arcpublishing.com/reuters/VNCGXBTO45ND5ODLBJ4OXIBXHI.jpg?w=1068&resize=1068,0&ssl=1 "U.S. FDIC tells Signature Bank’s crypto clients to close accounts by April 5")
/cloudfront-us-east-2.images.arcpublishing.com/reuters/VNCGXBTO45ND5ODLBJ4OXIBXHI.jpg?w=1200&resize=1200,0&ssl=1&description=U.S.+FDIC+tells+Signature+Bank%E2%80%99s+crypto+clients+to+close+accounts+by+April+5){kind=link}
March 28 (Reuters) – The U.S. Federal Deposit Insurance Corp (FDIC) has knowledgeable collapsed lender Signature Bank’s (SBNY.O) crypto clients that they’ve till April 5 to close their accounts and transfer their cash.
The deposits in query weren’t a part of a rescue deal organized with Flagstar Bank, a unit of New York Community Bancorp (NYCB.N), previous this month.
“Flagstar’s bid did not include about $4 billion in deposits related to Signature’s digital-asset business,” an FDIC spokesperson mentioned.
(*5*)”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 settlement with U.S. regulators to purchase deposits and loans from New York-based Signature Bank.
The FDIC had mentioned that the deal would see Flagstar Bank think considerably all of Signature Bank’s deposits, a few of its mortgage portfolios and all 40 of its former branches. Roughly $60 billion of Signature Bank’s loans and $4 billion of its deposits would stay with it in receivership.
Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Devika Syamnath
Our Standards: The Thomson Reuters Trust Principles.