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FDIC retains BlackRock unit for Signature Bank, SVB securities portfolio sale

Published 04/05/2023, 05:28 PM
Updated 04/05/2023, 05:30 PM
© Reuters. FILE PHOTO: The BlackRock logo is pictured outside their headquarters in the Manhattan borough of New York City, New York, U.S., May 25, 2021.  REUTERS/Carlo Allegri
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(Reuters) - The Federal Deposit Insurance Corporation (FDIC) has retained BlackRock Inc (NYSE:BLK) unit Financial Market Advisory to sell the securities portfolios it kept in receivership after the collapse of Signature Bank (OTC:SBNY) and Silicon Valley Bank.

The face values of the two portfolios are about $27 billion and $87 billion, the regulator said in a statement on Wednesday.

Reuters earlier reported that the FDIC retained advisers to sell the securities portfolios that the new owners of the two banks had rejected.

On Monday, the FDIC announced the marketing process for an about $60 billion loan portfolio retained in receivership following the failure of Signature Bank.

© Reuters. FILE PHOTO: The BlackRock logo is pictured outside their headquarters in the Manhattan borough of New York City, New York, U.S., May 25, 2021.  REUTERS/Carlo Allegri

The securities are primarily comprised of agency mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities, the FDIC said on Wednesday.

The recent failure of Signature Bank and SVB triggered the biggest banking crisis since 2008 and stoked heavy volatility in the sector, worsening existing jitters of an imminent recession.

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