CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$25,617.00
  • ethereum
    ETH$1,737.52
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » BlackRock to Sell $114 Billion of Defunct Bank Securities

    BlackRock to Sell $114 Billion of Defunct Bank Securities

    Author: Andrew Throuvalas

    Last Updated Apr 6, 2023 @ 17:38

    The organized sale will be gradual so as to minimize market impact. 

    BlackRock – the world’s largest asset manager – is collaborating with the U.S. government to sell off eleven figures worth of securities tied up with American banks that failed last month. 

    The sale $114 billion sale will include $27 billion worth of securities from Signature Bank, and $87 billion from Silicon Valley Bank (SVB). 

    Securities Dump Incoming?

    The Federal Deposit Insurance Corporation (FDIC) announced the sale on Wednesday, over three weeks after placing both Signature and SVB into receivership following a run on deposits in March. 

    “The securities are primarily comprised of Agency Mortgage Backed Securities, Collateralized Mortgage Obligations, and Commercial Mortgage Backed Securities,” explained the agency. 

    The FDIC tapped BlackRock to orchestrate the sale, which is intended to be “gradual and orderly” so as not to disturb the market, by taking daily liquidity and trading conditions into account. 

    This isn’t the first time federal regulators have hired BlackRock for support. Following the 2008 financial crisis, the Federal Reserve and FDIC tapped the firm to manage $130 billion in bad debt once belonging to Bear Stearns and American International Group. The central bank also turned to Blackrock to help stabilize the economy at the start of the covid pandemic in 2020, by overseeing certain debt-buying programs. 

    ADVERTISEMENT

    BlackRock holds $10 trillion in assets under management, outsizing all rivals including Vanguard Group ($7.2 trillion) and Fidelity Investments ($4.5 trillion). Both Blackrock and Fidelity have involved themselves with Bitcoin in some capacity, with the former partnering with Coinbase to launch a Bitcoin trust fund, and the latter allowing investors to add Bitcoin to their retirement 401(k) plans.   

    BlackRock CEO Larry Fink has suggested that blockchain tokenization could help drive a more efficient payments system, so long as they’re regulated properly. 

    Bailing Out the Banks

    Despite the government’s reluctance to call it a “bailout,” all depositors to both Silicon Valley Bank and Signature Bank were fully covered after each was forced to shut its doors last month. The manner of the bailout was such that taxpayers wouldn’t bear the brunt of the expense like in 2008. 

    Panic around SVB began after the company confirmed a realized loss of $2 billion after selling off its bond portfolio, prompting investors to worry about whether the firm was solvent. That worry quickly spread to other banks, eventually impacting European banks and claiming the financial giant Credit Suisse. 

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • Multiple Bank Stocks Stop Trading Amid Post SVB Volatility
    • Silicon Valley Bank Officially Fails as FDIC Takes Over
    • deutsche_bank_cover
      Deutsche Bank Shares Plunge, Default Insurance Soars Amid More Banking Panic
    Tags: Banks BlackRock
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Andrew Throuvalas
    More posts by this author

    Andrew is a content writer with a passion for Bitcoin. He became familiar with Bitcoin back in 2013, but began diligently studying the blockchain technology and its economic implications in 2017. Ever since, he’s believed in the network’s power to replace the current global monetary system, and provide financial freedom to billions worldwide.
    Contact: Medium | LinkedIn | Twitter

  • bitcoin
    BTC$25,617.00
  • ethereum
    ETH$1,737.52
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    What is a Meme Coin? The Biggest Meme Coins You Must Know About

    What is a Meme Coin? The Biggest Meme Coins You Must Know About

    The Weaknesses of Ethereum VS Modern Blockchains: Interview With Radix

    The Weaknesses of Ethereum VS Modern Blockchains: Interview With Radix

    Institutions Intend to Buy Bitcoin in Late 2023: Interview With CryptoQuant

    Institutions Intend to Buy Bitcoin in Late 2023: Interview With CryptoQuant

    Why Didn’t ETH Dump After Shanghai? Interview With Nansen

    Why Didn’t ETH Dump After Shanghai? Interview With Nansen

    What is PEPE Coin? Is This the Next Huge Memecoin?

    What is PEPE Coin? Is This the Next Huge Memecoin?

    What is the Ethereum Shanghai (Shapella) Upgrade? Everything You Need to Know

    What is the Ethereum Shanghai (Shapella) Upgrade? Everything You Need to Know

    15 Months Later, What Changed Since November 2021? Interview With Phantom Wallet CEO

    15 Months Later, What Changed Since November 2021? Interview With Phantom Wallet CEO

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!