US regulators appoint BlackRock to sell SVB and Signature Bank portfolios

Securities worth $87bn and $27bn respectively to be brought to market

Silicon Valley Bank
Copyright: Flickr


The Federal Deposit Insurance Corporation (FDIC) has appointed BlackRock’s Financial Markets Advisory arm to sell the portfolios of Signature Bank and Silicon Valley Bank (SVB) following their collapse in March. 

SVB’s securities portfolio is worth $87bn (£69.8bn), while Signature Bank’s assets total $27bn (£21.7bn).

The regulator said the sales will be “gradual and orderly”, with the aim being to “minimise the potential for any adverse impact on market functioning by taking into account daily liquidity and trading conditions.”

The portfolios are mostly made up of agency mortgage-backed securities.

SVB failed on 10 March, with Signature Bank following two days later, prompting the largest banking crisis since 2008.

See also: Managing uncertainty post-Credit Suisse: A question of weighting?


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