FDIC to sell Signature's Signet network; remaining bank clients given cutoff date

The Federal Deposit Insurance Corp. (FDIC) aims to sell Signature Bank’s Signet payments network, according to a report from Bloomberg on March 28.

That 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, Flagstar Bank, acquired parts of Signature Bank from the FDIC. However, that acquisition did not extend to certain parts of the company including Signature’s Signet network.

Signet instead remained under the control of the FDIC, which originally took control of Signature Bank on March 13 following the collapse of competing banks.

Certain cryptocurrency companies, including Coinbase, relied on the Signet network at times. The network allowed for faster settlements than some traditional options.

The latest Bloomberg report also indicates that customers who remain with Signature Bank must close their accounts and transfer their money elsewhere by April 5. Customers who do not withdraw their funds by that date will receive a check with their balance.