asset manager black rock is reportedly facing new deadlines over investments in government-backed banks.
of The company missed the Jan. 10 deadline issued by the federal government. Federal Deposit Insurance Corporation (FDIC) and now has until February 10 to resolve issues related to the company's oversight of bank investments.Bloomberg News reported Sunday (January 12), citing three sources familiar with the matter..
According to reports, BlackRock had asked for negotiations to be postponed until the end of negotiations. new government He will take office at the end of this month.
If sufficient progress is not made to resolve the issue, the FDIC may open an investigation into BlackRock and seek more information from the company, the people told Bloomberg. One of the people said this could include subpoenas and other “more coercive measures” from regulators.
BlackRock missed the Jan. 10 deadline and asked for a March 31 deadline, saying it had just two weeks to consider a proposed agreement that could negatively impact its ability to serve customers. While the FDIC denied that request, it also made other requests related to documents related to the company's decision-making and bank holdings, people told Bloomberg.
The report noted that BlackRock argues that the FDIC's plan would negatively impact index funds, which make up the majority of investors' portfolios, and increase banks' cost of raising capital. The company also wants the FDIC to coordinate new oversight with the Federal Reserve. own Passive contract with BlackRock.
PYMNTS has reached out to BlackRock for comment, but has not yet received a response. The FDIC declined to comment.
The news will arrive in a few weeks Rohit ChopraA member of the FDIC Board of Directors and Director of the Consumer Financial Protection Bureau (CFPB) issued a statement of praise. Actions taken by the FDIC to Secure a fund manager BlackRock, Vanguard and others did not exert undue influence on banks supervised by the FDIC.
Both asset management companies own shares both commercial companies and in bank and that These companies often characterize their engagement with these financiers as “reluctant.”
“However, we know that CEOs and board members of large companies are closely monitoring the policy announcements of these large owners,” Chopra said in a statement. “If these companies are not truly ‘passive,’ then they is in violation of Long-standing laws and regulations, including those related to banking. ”
