But his firm has been scrutinized for its record on supporting shareholder requests for climate-related disclosures.
The firm rolled out related initiatives, like exiting investments that carry sustainability-related risks and launching new products that screen for exposure to fossil fuels. Companies must be deliberate and committed to embracing purpose and serving all stakeholders - your shareholders, customers, employees, and the communities where you operate," he said. "Disclosure should be a means to achieving a more sustainable and inclusive capitalism. "Climate change has become a defining factor in companies' long-term prospects," he wrote in his open letter to chief executives in January. Fink has been vocal on matters of climate change, urging other companies' leaders to consider the associated risks. "The potential for a conflict of interest is great and it is just very difficult to police."īlackRock has emphasized that the division handling Fed mandates, the FMA, is distinct from its core money management business to prevent conflicts.Ħ. And they have intricate financial relations with people across the globe," Republican Senator Chuck Grassley told the New York Times at the time. "They have access to information when the Federal Reserve will try to sell securities, and what price they will accept. During the global financial crisis of 2007-2009, the Federal Reserve Bank of New York asked BlackRock's FMA division to handle assets of Bear Stearns and AIG, both on the verge of collapsing. The investment manager had been there before, defending its connection to the Federal Reserve.
The Federal Reserve tapped BlackRock during the last financial crisis, too. While at BlackRock, one of his roles was Fink's interim chief of staff.Īfter an analyst said on an April earnings call that investors viewed BlackRock's mandate as a "bailout" for his firm or the exchange-traded fund industry broadly, Fink called the question "insulting." 5. BlackRock has hired many former government officials into senior roles.īy the time Deese and Adeyemo got to BlackRock, they already had experience working in government. Deese was previously a senior advisor to President Barack Obama and served as deputy director of the National Economic Council, which he is now set to lead under Biden.Īdeyemo, who was appointed as deputy Treasury secretary in the Biden administration, had previously worked as Obama's senior international economics advisor. Firms try to replicate it as a product, but none have been able to do so at the same scale. The report found some $21.6 trillion in assets sat on the platform from just a third of its 240 clients, the FT reported, citing public documents verified with the companies and first-hand accounts. Apple, Microsoft, and Google's parent firm, Alphabet - the three biggest US public companies - all rely on the system to steward hundreds of billions of dollars in their corporate treasury investment portfolios." "Vanguard and State Street Global Advisors, the largest fund managers after BlackRock, are users, as are half the top 10 insurers by assets, as well as Japan's $1.5tn government pension fund, the world's largest. Meanwhile Michael Pyle, BlackRock's former global chief investment strategist who had worked in the Obama administration before joining the firm, serves as chief economic advisor to Vice President Kamala Harris.īut unlike Goldman Sachs, a household brand name synonymous with executives leaving finance to go shape public policy, BlackRock isn't as well-known to people outside the investment industry. Biden also tapped Adewale "Wally" Adeyemo, a former chief of staff to BlackRock chief executive and longtime Democrat Larry Fink, to serve as a top official at the Treasury Department. The firm has hired notable policy-makers over the years, and at least three leaders with the New York-based asset manager on their resumes now hold prominent roles in President Joe Biden's cabinet.įormer BlackRock investment executive Brian Deese leads Biden's National Economic Council, effectively serving as his top advisor on economic matters. It often indicates a user profile.īlackRock, the world's largest investment manager, has become an increasingly influential Wall Street player in Washington, DC. Account icon An icon in the shape of a person's head and shoulders.
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