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Community Bank of New York. (NYSE: NYCB) seeks to acquire bankrupt lender Signature Bank (NASDAQ: SBNY).
The Federal Deposit Insurance Corp. could announce a deal for Signature Bank (SBNY) as soon as this week, according to A Bloomberg report, which quoted familiar people. No final decision from the New York community (NYCB) has been reached and the talks could fail to materialize an agreement.
The news comes after a Financial Times report on Friday that the FDIC is ready to discuss losses suffered by failed lenders Silicon Valley Bank (SIVB) and Signature Bank (SBNY). The agency’s push for a loss-sharing deal comes a week after it ruled out such an arrangement when it tried and failed to auction off SVB (SIVB) last weekend.
A sale by either bank would force the new buyer to mark up the price of certain assets at fair value, which could potentially trigger immediate losses, the FT said. The FDIC gave bidders no signal about the magnitude of the losses it would consider supporting.
The New York State Department of Financial Services took possession of Signature Bank (SBNY) last Sunday to protect depositors.
The New York Community Bank (NYCB) report also comes after Bloomberg reported on Sunday that the Federal Deposit Insurance Corp. was heading for a breakup of Silicon Valley Bank after being unable to find a suitor for the entire company.
Bloomberg reported Saturday that First Citizens BancShares (FCNCA) is considering an offer for Silicon Valley Bank.
