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BlackRock Begins Sales of $114 Billion in Failed Bank Securities

Asset management giant BlackRock Inc (NYSE: BLK) is set to launch a months-long process on Tuesday to assist the Federal Deposit Insurance Corp (FDIC) in offloading $114 billion of assets acquired from recently failed banks, as reported by Bloomberg News.

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BlackRock's Unit to Sell Securities of Collapsed Banks

In early April, the FDIC retained a BlackRock unit to manage the sale of securities portfolios it held in receivership following the collapse of Signature Bank (OTC: SBNY) and Silicon Valley Bank.

Two Major Portfolios Face Sale by BlackRock's Advisory Unit

BlackRock's financial markets advisory unit is responsible for conducting sales of two significant portfolios with face values of nearly $27 billion and $8 billion, as noted on the FDIC's website.

BlackRock to Auction Additional Securitized Asset Pools

Besides the two main portfolios, BlackRock plans to hold auctions for other securitized asset pools, such as residential mortgage-backed securities not backed by government agencies and collateralized mortgage obligations, according to a separate note viewed by Bloomberg.