SVB Financial Group (SIVBQ)

[TIMGZ]

SIVBQ
US government bank regulators reportedly are trying to sell the securities that the new owners of the Silicon Valley Bank and Signature Bank(SGBG) declined to keep as part of their recent buyouts of the failed lenders, Reuters reported, citing unnamed sources.

The Federal Deposit Insurance Corporation has retained advisers to help sell the portfolios, people familiar with the matter told Reuters.

Silicon Valley Bank's and Signature Bank's(SGBG) securities portfolios, largely comprised of lower-yielding securities like longer-dated Treasuries and other US government agency-backed debt, carry a face value of around $90 billion and $26 billion, respectively. The value of these securities plunged after the Federal Reserve began increasing interest rates in early 2022.

It is still unclear how big of a hit the FDIC will take trying to unload the portfolios. The agency declined to comment when contacted by Reuters and the sources spoke to the news agency on condition of anonymity because the sales process is confidential.

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