BlackRock Inc. was hired by US regulators to help sell $114 billion in securities it amassed from failed lenders Signature Bank and Silicon Valley Bank, returning the asset-manager to its role as an adviser to the government in times of crisis.
The firm will conduct sales of $27 billion in securities from Signature and $87 billion from SVB Financial Group’s 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 that remained after the government sold the rest of the firms in March, the FDIC said.
The goal is for the sales to be “gradual and orderly,” the FDIC said, and that authorities seek “to minimize the potential for any adverse impact on market functioning by taking into account daily liquidity and trading conditions.”
Source : BlackRock Plans to Sell $114 Billion of Securities from Failed Banks