New York’s state bank is taking over the RBC National Bank after it agreed to buy out the bank’s creditors in a deal worth $8 billion.
The state will take control of RBC after the deal was approved by the New York State Banking Authority on Tuesday.
The bank, which owns several regional banks in New York and its surrounding region, is currently owned by the state.
Andrew Cuomo announced the deal on Twitter.
Andrew M. Cuomo (@NYGovCuomo) May 10, 2021The deal was finalized by New York Attorney General Eric Schneiderman, who said he has been in contact with RBC board members.
The deal allows the state to take control over RBC, which has been under state management since April 2016.RBC had been run by state regulators since March of 2017.
The state, which is the nation’s largest bank, has been trying to find a buyer for the bank since it was forced to close its branches in September after it had been forced to turn off thousands of customers.
Rockefeller Capital Group LLC, which had been advising the bank on its turnaround plan, will take over management of the bank.
In addition, the state will acquire $7.9 billion of RBA assets in the event the state fails to make payments to the banks.
State officials say the deal will allow them to save $2 billion in interest payments on the $7 billion, including interest on loans to consumers, for the duration of the agreement.RMB Chairman Joseph Stiglitz and RBC President and CEO James Gorman are expected to appear at a news conference on Wednesday, May 12, to discuss the deal.