Blackrock sells no longer existing bank papers worth $ 114 billion

Blackrock sells no longer existing bank papers worth $ 114 billion

Blackrock-the world's largest asset manager-works with the US government to sell securities worth eleven-digit amounts associated with American banks that have been broke out last month.

The sale worth $ 114 billion includes securities worth $ 27 billion from Signature Bank and $ 87 billion from Silicon Valley Bank (SVB).

securities dump on the march?

The Federal Deposit Insurance Corporation (FDIC) announced more than three weeks after both signature after a storm in March Forced administration were provided.

"The securities mainly consist of mortgage-secured securities, secured mortgage securities and commercial mortgage secured securities," said the agency.

The FDIC Blackrock with the orchestration of the sale, which should be "gradually and orderly" in order not to disturb the market by taking daily liquidity and trading conditions into account.

This is not the first time that federal authorities have commissioned Blackrock to support. After the financial crisis of 2008, the Federal Reserve and the FDIC commissioned the company to manage default losses of $ 130 billion, which once belonged to Bear Stearns and the American International Group. The central bank also turned to Blackrock to contribute to the stabilization of the economy at the beginning of Covid pandemic in 2020 by supervising certain debt purchase programs.

Blackrock manages assets of $ 10 trillion and thus exceeds all competitors, including Vanguard Group ($ 7.2 trillion) and Fidelity Investments ($ 4.5 trillion). Both Blackrock and Fidelity have dealt with Bitcoin in a way, with the former entered into a partnership with coinbase to have a partnership with a coin base to a Bitcoin Treuhandfonds and the latter enables investors to add their bitcoin to their 401 (k) plans for retirement .

Blackrock CEO Larry Fink has recommended This blockchain tokenization could help advance an efficient payment system, as long as they are properly regulated.

Rescue of the banks

Despite the reluctance of the government, to call it "bailout", all inserters were fully secured both the Silicon Valley Bank and the Signature Bank after both were forced to close their doors last month. The way the rescue operation was in such a way that taxpayers would not bear the main load of the costs in 2008.

Panic around SVB began after the company confirmed a realized loss of $ 2 billion after the sale of its bond portfolio, which caused investors to worry about whether the company was solvent. This concern quickly spread to other banks, finally had an impact on European banks and claimed the financial giants Credit Suisse .

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