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New York Community Bank to buy bankrupt Signature Bank



New York Community Bank has agreed to buy a significant stake in failed Signature Bank in a $2.7 billion deal, the Federal Deposit Insurance Corporation said. said late on sunday

ToKEN SWEET, AP Business Writer

NEW YORK — New York Community Bank has agreed to buy a significant stake in failed Signature Bank in a $2.7 billion deal, the Federal Deposit Insurance Corporation said. said at the end of Sunday.

Starting Monday, 40 branches of Signature Bank will become Flagstar Bank. Flagstar is one of the subsidiaries of New York Community Bank. The deal will include a $38.4 billion purchase of Signature Bank’s assets, just over a third of Signature’s total when the bank went bust a week ago.

The FDIC said the $60 billion in Signature Bank loans will remain in receivership and are expected to be sold on time.

Signature Bank became the second bank to fail during this banking crisis, about 48 hours after the collapse of Silicon Valley Bank. New York-based Signature has been a major commercial lender in the tri-state region but has taken to cryptocurrencies as a potential growth business in recent years.

Since the bankruptcy of Silicon Valley Bank, savers have become concerned about the health of Signature Bank due to its large number of uninsured deposits, as well as its exposure to cryptocurrencies and other technology-focused lending. By the time it was shut down by regulators, Signature was the third-largest bank failure in U.S. history.

The FDIC says it expects Signature Bank’s failure to cost the deposit insurance fund $2.5 billion, but that figure could change as the regulator sells off assets. The deposit insurance fund is paid for by banks’ contributions, and there are no direct costs for taxpayers in the event of a bank failure.

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Banking giant UBS acquires smaller competitor Credit Suisse to avoid market turmoil



GENEVA, Switzerland (AP) — Banking giant UBS is buying its smaller competitor Credit Suisse to avoid further turmoil in the global banking market, Swiss President Alain Berset said Sunday night.

Berset, who did not elaborate on the value of the deal, called the announcement “very broad for the stability of international finance.” The uncontrolled collapse of Credit Suisse will have unintended consequences for the country and the international financial system.”

The Swiss president said the council agreed to guarantee a total of 150 billion francs liquidity for the 167-year-old bank, far exceeding the 50 billion (54 million Swiss francs) figure that was announced publicly. But this was not enough.

“We noted that liquidity outflows and market volatility have demonstrated that the necessary confidence can no longer be restored and a quick solution is needed to ensure stability.”

Swiss Finance Minister Karin Keller-Sutter said the board “regrets that a bank that was once a model institution in Switzerland and part of our strong position could even get into this situation.”

The combination of two of the largest and most famous Swiss banks, each with a storied history dating back to the mid-19th century, is like a thunderbolt on Switzerland’s reputation as a world financial center, leaving it on the cusp of a single national champion. to banks. Part of the trouble that Credit Suisse has faced in recent years stems from a spy scandal that was commissioned by its executives to spy on a former colleague who defected to UBS.

Berset said the Federal Council – Switzerland’s executive branch – has already been discussing Credit Suisse’s long-standing difficult situation since the start of the year and has held emergency meetings over the past four days amid growing concerns about its financial condition, causing major swoons in Switzerland. its stock price and sparked the specter of the financial crisis of 2007-2008.

Credit Suisse has been designated by the Financial Stability Board, the international body that oversees the global financial system, as one of the world’s systemically important banks. This means that regulators believe that its uncontrolled collapse will lead to unrest throughout the financial system, similar to the collapse of Lehman Brothers 15 years ago.

Sunday press conference follows crash two large American banks last week, which spurred crazy, broad answer from US government to prevent further banking panic. However, global financial markets are under pressure as the share price of Credit Suisse began to plummet this week.

Many from Credit Suisse problems are unique and do not intersect with the weaknesses that led to the collapse of Silicon Valley Bank and Signature Bank, whose failures led to significant rescue efforts Federal Deposit Insurance Corporation and Federal Reserve. As a result, their decline does not necessarily signal the onset of a financial crisis like the one that occurred in 2008.

The deal ends a highly volatile week for Credit Suisse. especially on wednesday when its shares fell to a record low after its biggest investor, the National Bank of Saudi Arabia, said it would no longer invest in the bank to avoid violating rules that would come into effect if its stake rose by about 10%. .

On Friday, shares fell 8% to close at 1.86 francs ($2) on the Swiss exchange. The shares have suffered a long decline: in 2007 they traded at over 80 francs.

The current problems began after Credit Suisse said on Tuesday that managers had identified “materials” in the bank’s internal control system for financial statements as of the end of last year. This fanned fears that Credit Suisse would be the next domino.

Although Credit Suisse is smaller than its Swiss rival UBS, it still wields significant influence, managing $1.4 trillion in assets. The firm has significant sales teams around the world, serves the rich and wealthy through its wealth management business, and is the principal M&A advisor to global companies. Notably, Credit Suisse did not need government bailouts in 2008 during the financial crisis, while UBS did.

Despite banking turmoil, the European Central Bank on Thursday approved a large increase of half a percentage point in interest rates to try to curb persistently high inflation, saying Europe’s banking sector is “resilient” with strong finances.

ECB President Christine Lagarde said that during the financial crisis, banks “are in a very different position compared to 2008”, partly because of more stringent government regulation.

The Swiss bank is pushing to raise money from investors and roll out a new strategy to overcome multiple challenges, including bad hedge fund betsrepeated changes in top management And spy scandal involving UBS.

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Corruption investigator shot dead in South Africa



Police officer barricaded the crime scene

A South African accountant investigating high-level corruption cases was shot dead along with his son.

Kloete Murray, 50, was the liquidator for Bosasa, a company implicated in numerous government contract scandals.

He also worked as a liquidator for firms associated with the wealthy Gupta brothers, who deny allegations of bribery.

The police will check if there is a link between Mr. Murray’s murder and this corruption investigation.

Mr. Murray was shot dead by unidentified gunmen while driving in Johannesburg with his 28-year-old son Thomas, a legal adviser, on Saturday.

His son died at the scene, while Murray was taken to hospital and later died from his injuries, local media reported, citing a police spokesman.

According to South African media reports, the couple was driving their white Toyota Prado to their home in Pretoria.

Mr. Murray’s job as a court-appointed company liquidator was to check the accounts of firms that had closed, recover assets and report any crime.

One such company was Bosasa, a government contractor specializing in prison services.

Zondo’s landmark corruption commission concluded that the company extensively bribed politicians and government officials to win government contracts during Jacob Zuma’s nine-year presidency from 2009 to 2018.

Mr. Zuma refused to cooperate with the investigation, but denied allegations of corruption.

In 2018, current South African President Cyril Ramaphosa said he would return a $35,000 (£27,300) donation from Bosasa.

The anti-corruption investigator found that he had misled parliament about the donation, but that the decision was rejected by the country’s High CourtT.

Mr Ramaphosa also faced other allegations of corruptionwhich he denies.

Bosasa went into voluntary liquidation after banks closed its accounts.

Mr. Murray also worked as a liquidator for firms associated with the Gupta brothers. The Zondo Commission found that brothers Ajay, Rajesh and Atul tried to influence political and economic decisions during Mr. Zuma’s presidency in a process known as “state capture”.

The Guptas moved from India to South Africa in 1993 and owned an extensive portfolio of companies that had lucrative contracts with South African government departments and state-owned companies.

South African authorities is currently working on the extradition of the Gupta brothers from the UAE.where they were arrested to face trial.

They denied accusations of paying financial bribes to win contracts.

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