BlackRock Inc. was hired as an adviser to help the US government arrange the sale of $114 billion in securities that were held by failed lenders Signature Bank and Silicon Valley Bank.
(Bloomberg) — BlackRock Inc. was hired as an adviser to help the US government arrange the sale of $114 billion in securities that were held by failed lenders Signature Bank and Silicon Valley Bank.
The asset-management giant will conduct the sales of $27 billion in securities from Signature and $87 billion from Silicon Valley Bank, the Federal Deposit Insurance Corp. said in a statement Wednesday. The holdings are mostly agency mortgage-backed securities, collateralized mortgage obligations and commercial MBS, the agency said.
The sales “will be gradual and orderly, and will aim to minimize the potential for any adverse impact on market functioning by taking into account daily liquidity and trading conditions,” the FDIC said.
The FDIC was appointed receiver for the banks last month as they collapsed under the weight of deposit withdrawals. Signature’s deposits and some of its loans were taken over by New York Community Bancorp’s Flagstar Bank, while SVB Financial Group’s Silicon Valley Bank was acquired from the FDIC by First Citizens BancShares Inc.
A BlackRock spokesperson declined to comment.
–With assistance from Silla Brush.
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