Signature bank finds a new owner.
Signature Bank will be purchased by New York Community Bancorp. It will assume most of its deposits at $34 billion. The FDIC estimates it will cost the Deposit Insurance Fund $2.5 billion. A far cry from the $38 billion in total deposits when it entered receivership.
This is a good example how the ultimate cost to the Deposit Insurance Fund is often overstated in these bank failures. Once a failed bank is acquired or liquidated, it is only the excess not covered in the acquisition or liquidation that falls on the Deposit Insurance Fund. Most failed banks have more assets than their deposits, so the FDIC's exposure is generally ultimately limited.