The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

FDIC hires Blackrock to market failed banks’ securities

The Federal Deposit Insurance Corp. has hired Blackrock Financial Market Advisory to assist in marketing the securities portfolios of the failed Silicon Valley Bank and Signature Bank.

The agency said in a press release that the face value for the Signature securities is about $27 billion. The face value of the Silicon Valley securities is $87 billion.

The securities are primarily comprised of agency mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities.

The plan is to conduct “gradual and orderly” sales designed to “minimize the potential for any adverse impact on market functioning by taking into account daily liquidity and trading conditions.”

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