BlackRock to Sell $114 Billion of Failed Banks’ Securities

  • FDIC was stuck with Silicon Valley Bank, Signature securities
  • Agency says it will avoid ‘any adverse impact’ on the market

BlackRock headquarters in New York.

Photographer: Michael Nagle/Bloomberg
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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 statementBloomberg Terminal 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.