LoanDepot's unit transfers $225 mln from FDIC-run Signature Bridge Bank (updated)

loanDepot

15/03/2023 10:32

(Adds details from filing, background)
       March 15 (Reuters) - LoanDepot.com LLC, an indirect unit
of non-bank lender loanDepot Inc  LDI.N , transferred $225
million of corporate cash balances held at Federal Deposit
Insurance Corporation (FDIC)-operated Signature Bridge Bank to a
large money center bank on Tuesday, according to a filing on
Wednesday.
    While loanDepot Inc still maintains fully insured custodial
deposit accounts at Signature, all of its cash and cash
equivalents are now distributed across large money center banks,
it said in the filing.
    Signature Bridge bank was created after state regulators
closed New York-based Signature Bank  SBNY.O  on Sunday and the
FDIC took control.  urn:newsml:reuters.com:*:nL1N35K0PV
    Signature Bank's demise was the third-largest failure in
U.S. banking history and came two days after authorities
shuttered Silicon Valley Bank  SIVB.O  in a collapse that
stranded billions in deposits.
    LoanDepot Inc does not hold cash deposits or securities or
have credit exposure to Silicon Valley Bank.

 (Reporting by Mehnaz Yasmin in Bengaluru; Editing by Savio
D'Souza)
 ((Mehnaz.Yasmin@thomsonreuters.com;))