BlackRock to take on critical role for banks in crisis

The Federal Deposit Insurance Corporation (FDIC) has chosen BlackRock, the world’s largest fund management firm, to sell securities in recent bank failures. The Federal Deposit Insurance Corporation (FDIC) hired BlackRock to sell portfolios of securities it had held in receivership after the collapses of Signature Bank and Silicon Valley Bank. The two portfolios have face values of about $27 billion and $87 billion, the FDIC said Wednesday. On Monday, the FDIC announced the marketing process for a portfolio of about $60 billion in loans that had been held in receivership after the collapse of Signature Bank. The securities to be sold primarily consist of mortgage-backed securities, mortgage obligations and commercial mortgage-backed securities, the FDIC said Wednesday. The recent failures of Signature Bank and SVB triggered the worst banking crisis since 2008 and fueled severe volatility in the industry, exacerbating existing concerns of an impending recession.