BlackRock has some big problems. (2024)

FAQs

What's the issue with BlackRock? ›

BlackRock has recently asserted itself as a leader in the investment industry to promote environmental, social, and governance (ESG) factors on portfolio companies. The Securities Division alleges BlackRock, through its ESG assertions, has repeatedly made false and misleading statements to Mississippi investors.

Ethical and Social Concerns. Environmental Issues: Critics argue that BlackRock has not done enough to steer investments away from fossil fuel companies and other industries contributing to climate change.

It's seldom an easy choice between Vanguard and BlackRock. As the world's two largest investment firms, they are reputable and trustworthy.

We have zero tolerance in relation to illegal or unethical conduct and this is articulated in our relevant policies, including policies on conflicts of interest, gifts and entertainment, money laundering and counter terrorism, fraud, sanctions, outside activities, political contributions, and bribery and corruption.

BlackRock is the world's largest asset manager, with US$8.59 trillion in assets under management as of December 31, 2022. This means that BlackRock owns or manages a significant share of many companies, including some of the biggest and most influential ones in various sectors and industries.

Indiana Secretary of State Diego Morales sent a cease and desist letter on Thursday to BlackRock — the world's largest asset manager — for alleged securities fraud, accusing the company of making “false and misleading statements” about their environmental, social or governance (ESG) funds and allocation focus.

Larry Fink is the founder, CEO and chairman of powerhouse investment management firm BlackRock, one of the world's largest asset managers. He and seven partners founded BlackRock in 1988. Originally it was part of The Blackstone Group. BlackRock was spun off from Blackstone in 1994 and went public in 1999.

Now, it is the world's largest asset manager with $10 trillion currently in its portfolio. According to Marketwatch, there is currently around $40 trillion in circulation around the world — which means BlackRock manages a quarter of the world's money.

The weapon companies that BlackRock promotes have been accused of groundwater contamination, misconduct, labor violations, and overinflated pricing, resulting in overbilling defense contracts issued by the federal government. Investments in weapons companies are a risk to the climate.

Is BlackRock really powerful? ›

Due to its power and the sheer size and scope of its financial assets and activities, BlackRock has been called the world's largest shadow bank by The Economist and Basler Zeitung.

The 10 largest shareholder of PepsiCo as of December 2023 were: The Vanguard Group (9.35%) BlackRock (7.96%) State Street Corporation (4.20%)

BlackRock's support of ESG resolutions falls to record low

BlackRock scaled back its support of environmental, social, and government-related resolutions in the 2023-24 proxy year to a mere 4%, a fresh record low.

Military weapons grade

Fund manager is invested in military contractors above the threshold of 2.5% and below the threshold of 4%.

BlackRock's global ETF listed on the Deutsche Boerse experienced a flash crash earlier this month as liquidity vanished from the market following the report of US jobs data.