SBNY - BlackRock hired by FDIC to sell SVB Signature securities portfolios
2023-04-05 17:31:34 ET
The Federal Deposit Insurance Agency has hired BlackRock ( NYSE: BLK ) Financial Market Advisory to sell the crippled securities portfolios of Silicon Valley Bank ( OTC:SIVBQ ) and Signature Bank ( OTC:SBNY ), both of which failed last month, according to a Wednesday release.
The face values of SVB and SBNY's securities portfolios -- mostly consist of agency mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities, stood at $87B and $27B, respectively. The Federal Reserve's aggressive interest-rate hikes over the past year have hampered the value of those securities.
The sales "will be gradual and orderly," the FDIC said , "and will aim to minimize the potential for any adverse impact on market functioning by taking into account daily liquidity and trading conditions."
On March 31, Reuters reported that the banking regulator was seeking to sell the beaten-down securities portfolios of the collapsed lenders .
More on the Bank Crisis
- Banking Fiasco: Fit Financials With Firm Fundamentals
- Why This Banking Crisis Makes A Recession More Likely
- Banking Crisis Consequences And Opportunities
- The Banking Crisis Of Mar'23: Silicon Valley Bank
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BlackRock hired by FDIC to sell SVB, Signature securities portfolios