FDIC to sell Signature’s Signet network; remaining bank clients given cutoff date
The Federal Deposit Insurance Corporation (FDIC) is looking to sell Signature Bank’s Signet payment network, according to a Bloomberg report. March 28th.
The plan has not been officially announced. Rather, Bloomberg’s report cites a spokesperson who confirmed that the FDIC intends to proceed with the sale.
Previously, on March 19, New York Community Bankcorp and its subsidiary Flagster Bank acquired a portion of Signature Bank from the FDIC. However, that acquisition didn’t extend to certain parts of the company, including Signature’s Signet network.
Signet instead remained under the control of the FDIC, which first took control of Signature Bank on March 13 following the bankruptcy of a competing bank.
Certain cryptocurrency companies, including Coinbase, have relied on the Signet network from time to time. This network allows faster settlements than some traditional options.
Customers who remain at Signature Bank have until April 5th to close their accounts and transfer money elsewhere, according to the latest Bloomberg report. Customers who have not withdrawn their funds by that date will be sent a check with a balance.
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