Flagstar Bank, N.A., a subsidiary of Long Island-based New York Community Bancorp, has agreed to assume substantially all the deposits and purchase certain loan portfolios of Signature Bridge Bank, N.A., the FDIC said today.
Following the failures of Silicon Valley Bank and Signature Bank earlier this month, the Biden administration called on Congress to expand the FDIC’s authority to claw back compensation from executives at failed banks, bar bank executives at failed banks from holding jobs in the banking industry and bring fines against executives of failed banks.
As regulators conduct their reviews, Brown said they should look for “broader vulnerabilities” in the banking system and take steps to mitigate them.
Following the opening by the FDIC of two bridge banks, Silicon Valley Bridge Bank and Signature Bridge Bank, to assume the deposits and obligations of two failing banks, the agency this week confirmed that these institutions are operating as full-service banks.
In a speech following the failures of Silicon Valley Bank and Signature Bank over the weekend, President Biden today said that Americans can have confidence that the banking system is safe and highlighted the decision of the Treasury Department, Federal Reserve and FDIC to guarantee the uninsured depositors at these banks.
After two bank failures on Friday and Sunday, the first since 2020, federal regulators today announced actions to support bank liquidity and address consumer confidence in deposits not subject to FDIC insurance.
Commenting on the current state of large bank resolution planning at an industry event today, FDIC Chairman Jelena McWilliams today said that the FDIC is considering several policy changes to “strengthen and streamline” the large bank resolution planning process.
The FDIC board today approved a final rule requiring banks with more than 2 million deposit accounts to upgrade their deposit recordkeeping systems to facilitate the determination of FDIC insured deposits in the event of a bank failure.
In an effort to enhance its ability to grant new limited purpose charters, the OCC is issuing a proposed rule that would address how the agency will handle receiverships for national banks not insured by the FDIC, such as trust banks and other special purpose charters.
In a joint letter with three other financial trade associations today, ABA responded to an FDIC proposal that would require banks with more than 2 million deposit accounts to collect extensive depositor information and develop systems that would allow the FDIC to close the bank and use the bank’s system to make deposit insurance determinations.