7 votes

People are worried about BlackRock

1 comment

  1. skybrian
    (edited )
    From the article: [...] [...]

    From the article:

    One part of the Fed’s plan is to buy bond exchange-traded funds. BlackRock itself runs ETFs under the iShares brand, and could end up buying funds it manages. There are rules in place to avoid conflicts of interest—for example, it won’t charge the Fed management fees on ETF shares. “BlackRock is acting as a fiduciary to the Federal Reserve Bank of New York,” says a spokesman for the company. “As such, BlackRock will execute this mandate at the sole discretion of the bank, and in accordance with their detailed investment guidelines.”

    Still the arrangement is bringing new attention to the company’s scale and ubiquity. “It’s impossible to think of BlackRock without thinking of them as a fourth branch of government,” says William Birdthistle, a professor at the Chicago-Kent College of Law who studies the fund industry.


    Fink was on the shortlist in 2012 to replace outgoing Treasury Secretary Tim Geithner. Now he’s widely viewed as a contender for that post in a possible Joe Biden administration. It isn’t clear how that would be received by the Democratic Party’s left flank. But Fink stands out for Wall Street-friendly members of the party who see value in the expertise of financiers.


    At the same time, the money manager built a powerful advocacy arm. Its sphere of influence reaches beyond the central bank to lawmakers, presidents, and government agency heads from both political parties, though its hiring leans Democratic. Bloomberg found only a handful of current BlackRock executives who came out of the George W. Bush administration, but more than a dozen Barack Obama alumni. These include Obama’s national security adviser, senior adviser for climate policy, the former Federal Reserve vice chairman he appointed, and numerous White House, Treasury, and Fed economists.

    3 votes