FDIC looks to sell SVB and Signature Bank securities portfolios
The US Federal Deposit Insurance Corporation (FDIC) is looking to sell off the securities portfolios it acquired after the collapse of Signature Bank and Silicon Valley Bank (SVB).
FDIC to sell SVB and Signature Bank securities portfolios
The regulator says the two portfolios are worth around $27 billion (Signature Bank) and $87 billion (SVB) and are primarily made up of agency mortgage-backed securities, collateralised mortgage obligations, and commercial mortgage-backed securities.
The FDIC has retained BlackRock Financial Market Advisory to conduct the sales.
The regulator is also looking to sell the $60 billion loan portfolio it holds following the collapse of Signature Bank, which it intends to market later this summer.
This portfolio is comprised primarily of commercial real estate (CRE) loans, commercial loans, and a smaller pool of single-family residential loans.
The news of the portfolio sales comes weeks after Silicon Valley Bank dramatically collapsed, leading the FDIC to take charge and protect deposits by establishing a bridge bank.
First Citizens Bank has since entered into an agreement with the FDIC to purchase substantially all loans and certain other assets of Silicon Valley Bridge Bank.
On 13 March, HSBC UK stepped in to acquire SVB’s UK operations for a nominal sum of £1.
The SVB collapse also triggered the fall of New York’s Signature Bank, which is now being acquired in part by Flagstar Bank.
According to Reuters, the two new owners of the banks rejected the opportunity to acquire the respective securities portfolios as part of their deals.
