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Community Bank of New York (NYSE:NYCB) pursues the acquisition of failed lender Signature Bank (NASDAQ:SBNY).
The Federal Deposit Insurance Corp. may announce a deal for Signature Bank (SBNY) as early as this week, according to to Bloomberg report, who quoted well-known people. No final decision from the New York community (NYCB) has been done and the talks may not materialize in an agreement.
The news comes after a Financial Times report on Friday that the FDIC is open to discussing losses from failed lenders Silicon Valley Bank (SIVB) and Signature Bank (SBNY). The agency’s provision for a loss-sharing deal comes a week after it scrapped such a deal when it tried and failed to auction SVB (SIVB) last weekend.
A sale by either bank would require the new buyer to mark-up certain assets at fair value, in a move that could lead to immediate losses, the FT said. The FDIC has not given bidders any indication of the size of the losses it would be considering backing.
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 Federal Deposit Insurance Corp. is moving towards a breakup of Silicon Valley Bank after he was unable to find a suitor for the entire company.
Bloomberg reported on Saturday that First Citizens BancShares (FCNCA) was said to be considering an offer for Silicon Valley Bank.
