BlackRock, Pimco bid to manage bailout assets: report

(Reuters) - BlackRock Inc and Pacific Investment Management Co (Pimco) are bidding to manage mortgage-backed assets in the U.S.'s $700 billion financial bailout, Bloomberg news agency said, citing people familiar with the matter.

State Street Corp and Bank of New York Mellon Corp are bidding to handle record-keeping and custody services for the U.S. Treasury, the agency said citing the people, who had asked not to be identified because the process is private.

In an attempt to clean up the worst financial crisis since the Great Depression, the U.S. Congress has legislated to let the government buy illiquid mortgage assets from banks and other financial institutions.

BlackRock, Bank of New York Mellon and Pimco, a unit of German insurer Allianz, did not immediately return calls seeking comment.

State Street and the U.S. Treasury Department could not be immediately reached for comment.

(Reporting by Ajay Kamalakaran in Bangalore, editing by Will Waterman)