Trying to fight the banking bleedout 🏦; Western Union doubles down on digital growth 🚀; The inverse relationship between economic stability and BNPL 📈
FinTech is Eating the World, 22 March
Hey Everyone,
Good morning! On today’s radar, we have regulators fighting the banking bleed-out (what message does this send?), Western Union that doubles down on digital growth (it’s a strong move!), and the inverse relationship between economic stability and BNPL (apparently, it’s far from being dead). Let’s jump straight into the interesting stuff 🌶
Trying to fight the banking bleedout 🏦
Following the money 💸 You already know that the Swiss banking giant UBS UBS 0.00%↑ has agreed to acquire failing competitor Credit Suisse CS 0.00%↑in a shotgun wedding orchestrated by the Swiss authorities.
What we haven’t talked about is that we have quite a similar situation in the US, where Flagstar Bank, a subsidiary of New York Community Bank, agreed to buy Signature Bank’s assets.
So let’s take a brief look at it and see what are the broader implications of the current banking crisis.
More on this 👉 SO Flagstar bank has agreed to purchase defunct Signature Bank’s assets for $2.7 billion. Here’s all you need to know:
The deal includes $38.4B of Signature Bank’s total $110B in assets. What’s important to note is that it doesn’t include the bank’s digital assets, which the FDIC will return to customers. When Signature Bank was put up for sale, the FDIC required any buyer to divest entirely from crypto and digital asset banking.
$60B worth of Signature Bank’s loans will remain in receivership, and the FDIC expects they’ll be sold at a later date.
Forty of Signature Bank’s branches will be renamed Flagstar Bank
What this means? 🤔 Together with the collapsed SVB and now Credit Suisse, this sends one very clear message. Here’s the takeaway: