The old cliché goes that opposites attract, and there is no better example of this than the strange, interesting, and nationally beneficial relationship between Larry Fink and Donald Trump.
Yes, that’s right, Fink and Trump.
A match made in heaven? Or, more accurately, a match made on Wall Street: The CEO of BlackRock, the ultra-globalist known for ESG, was once President Trump’s money manager, and the populist Republican ex-president (and likely future president, according to polls) still seeks out Fink for his economic insights, The Washington Post has learned.
Sure, Trump likes to tout JPMorgan superbanker CEO Jamie Dimon as a possible Treasury secretary (more on why that won’t happen later), but I’ve heard it’s actually Fink whom Trump likes, respects and talks to.
The feeling was mutual, and I describe that relationship in my upcoming book, Go Woke, Go Broke.
During Trump’s term, Fink focused all his energy on environmental, social and governance investing, but somehow ended up being appointed to Trump’s business advisory council.
It seemed odd at the time, but upon further digging, it turns out that BlackRock has been handling Trump’s investment portfolio for many years (Trump invested in the BlackRock Obsidian Fund, which the company describes as a “global fixed income multi-strategy hedge fund”).
When President Trump hosted a group of CEOs, including Dimon, at the White House in 2017, he was quick to mention Fink.
“Larry Fink is here. Where is Larry Fink?” Trump said, upon spotting the money manager in the crowd. “Larry has done a great job for me. He’s managed a lot of my money. I’ll be honest with you, he’s made me a lot of money.”
It’s unclear whether BlackRock still has a business relationship with Donald Trump (a BlackRock spokesperson declined to comment for this column, nor did the Trump campaign), but a person with direct knowledge of the matter said the relationship between the two firms still functions, albeit covertly.
And it’s understandable why it’s being kept secret: Fink is a longtime Wall Street Democrat who has been touted as Treasury secretary for Democratic presidents going back to Barack Obama, and his aides are ubiquitous in the Biden administration.
He is (his words) a “proud globalist.” BlackRock was once a staunch supporter of ESG, and is often criticized on the right.
He has been vilified for his support of conscious investing, as it has been in the past, pushing ESG to extremes, forcing oil companies to stop drilling and imposing strict DEI standards in hiring.
Meanwhile, Mr. Trump is expected to go all-in on MAGA populism if elected, and his choice of populist Ohio Sen. J.D. Vance as his running mate suggests that all the things Mr. Fink hates are on the horizon: tariffs, a weak dollar, trade wars, rising debt.
But a retrospective study of their comments about each other helps to understand why they remain close, and why, if Fink has Trump’s ear, he may tone down his economic populism during his presidency.
Of course, Fink runs the world’s largest asset management firm, with $10 trillion in assets under management.
Whatever he says about his involvement with ESG, Fink knows the markets well and, given BlackRock’s size, has a commanding view of them from his New York City offices.
He will no doubt remind President Trump that going all-out MAGA with tariffs and trade wars will destabilize the markets and the economy as a whole.
And Trump loved to tout soaring stock prices during his time in the White House, at a time when more traditional economic conservatives on his team were reining in such policies.
Political moderate
Moreover, Fink is a much more politically moderate figure than the ESG-tainted image pushed by critics on the right.
He and BlackRock have recently backed away from ESG, focusing primarily on clients who want it (Democrat-leaning state pension funds and sovereign wealth funds).
He meets with Republican leaders in Congress and state governments and is no friend to hard-left wingers like Massachusetts Senator Elizabeth Warren, because BlackRock, for all its talk about ESG, was and remains one of the largest institutional investors in energy companies.
Trump has always been a moderate in politics, despite his populist rhetoric. Tax cuts and deregulation were “far-right” policies for him. He did not get involved in wars or make drastic budget cuts.
In fact, he spent money like a Democrat: His trade wars during his first term were primarily aimed at China, a worthy target given its trade belligerence.
So why does Trump continue to push Jamie Dimon for Treasury Secretary over Fink?
Real estate mogul Trump never gave up on his second career in reality TV, which he pursued before going into politics, and he knows what looks good.
My guess is that Trump believes Dimon is a better fit than Fink and is therefore willing to ignore the stark differences between their pasts.
Remember when Dimon once said he was a better choice to be president than Trump because “I’m just as tough as Trump and smarter than him?” Ouch.
Before mentioning Dimon’s name for Treasury secretary, Trump posted on social media that JPMorgan’s Dimon is an “overrated globalist.”
JPMorgan sources said Dimon would not accept the job if asked, meaning Trump will likely keep asking because he hates being turned down.
And above all, Donald is a pragmatist who, in the words of Don Corleone, “values his friends.” [like Fink] Nearby enemies [like Dimon] Closer.”
Charles Gasparino is the author of the upcoming book “Go Woke, Go Broke: The Inside Story of the Radicalization of Corporate America.”
