Blackrock to Kick off Sales of Securities of Failed Banks - Bloomberg News

File Photo: People are seen in front of a showroom that hosts BlackRock in Davos, Switzerland January 22, 2020. REUTERS/Arnd Wiegmann

Asset manager BlackRock Inc is launching a months-long process on Tuesday to help the Federal Deposit Insurance Corp offload $114 billion of assets it picked up recently from failed banks, Bloomberg News reported on Monday, citing emails.

Earlier this month, the Federal Deposit Insurance Corp (FDIC) retained BlackRock’s unit to sell the securities portfolios it kept in receivership after the collapse of Signature Bank and Silicon Valley Bank.

BlackRock’s financial markets advisory unit will conduct sales of the two portfolios with face values of nearly $27 billion and $8 billion, according to FDIC’s website.

It also plans to hold auctions of other securitized pools of assets including residential mortgage-backed securities that aren’t backed by government agencies, as well as collateralized mortgage obligations, according to a separate note seen by Bloomberg.

The asset manager declined to comment.


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