Blackrock Selected to Sell US$114 Billion of Failed US Bank Securities. But in Paris…
BlackRock Inc. has been hired by US regulators to assist in the sale of $114 billion in securities hoarded by failed lenders Signature Bank and Silicon Valley Bank, using the wealth manager in his role as government advisor in times of crisis .
Federal Deposit Insurance Corp. said Wednesday it would sell $27 billion of Signature and $87 billion of Silicon Valley Bank securities to SVB Financial Group. The holdings are mostly agency mortgage-backed securities, secured mortgage bonds and commercial MBS that remained after the government sold the rest of the companies in March, the FDIC said.
The goal is for the sales to be "gradual and orderly," the FDIC said, and for authorities to "seek to minimize the potential negative impact on market functioning, taking into account daily liquidity and trading conditions."
Washington usually turns to BlackRock and CEO Larry Fink in times of need, given the firm's scale and reach in global markets, $8.6 trillion in client assets, and experience managing complex debts.
In the aftermath of the 2008 financial crisis, the Federal Reserve and the Treasury Department awarded BlackRock contracts to manage $130 billion of bad debt previously on the books of Bear Stearns and American International Group Inc. The Fed is for BlackRock to help oversee debt purchase programs to stabilize the economy at the onset of the pandemic in 2020.
While the US authorities trust BlackRock to manage the securities of failed banks, the large financial institution is being strongly contested in Paris by protesters who oppose the pension reform. Just in these days they have demonstrated in front of the Parisian headquarters of BlockRock even managing to penetrate inside by occupying the headquarters
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NOW: Protest at BlackRock head office in Paris. @GeneralMCNews pic.twitter.com/S2ykfNx8TY
— Adams684 (@Adams6841) April 6, 2023
The police intervened and there were hard clashes with demonstrators, as indeed often in France in recent weeks.
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The article Blackrock Selected to Sell US$114 Billion of Bankrupt US Bank Securities. In Paris instead… it comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/blackrock-selezionata-per-vendere-114-miliardi-usd-di-titoli-delle-banche-fallite-usa-a-parigi-invece/ on Thu, 06 Apr 2023 20:31:16 +0000.