A Glaring New Conflict Of Interest Undermines Public Trust In Federal Reserve

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The Fed's hiring of BlackRock to manage its bond purchases raises concerns about institutional trust.

During the last crisis, BlackRock's assets under management were $1.3 trillion, so they have ballooned in size by over five times in just a decade.on behalf of the central bank," according to Bloomberg. It doesn’t take a financial expert to find that kind of self-dealing fishy.

The appearance of coziness between central bankers and the private equity giant is further underlined by ex-Fed Vice Chair Stanley Fischer decision toIn addition to the prestige advantage the move gives BlackRock, which has suddenly become instrumental to the transmission of monetary policy, there's also the bonus of management fees:A group of 30 organizations sent aarguing that"by giving BlackRock full control of this debt buyout program, the Fed is further entwining the roles of...

This makes BlackRock even more"systemically important to the financial system" even as it skirts even the most basic regulations that apply to Wall Street banks. "Furthermore, BlackRock is the largest purveyor of ETFs, and this deal gives it the power to buy up its own ETF products, potentially earning double," the letter said., arguing the Fed may unwittingly be underwriting investments that are harmful to the environment and worsen climate change.

"While economic recovery for everyday Americans is important right now, corporate bond-buying programs such as these may be stealth fossil fuel company bailouts if adequate climate safeguards are not applied."

 

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Кто с этим согласен?

Matt_T_Sully

happy thanksgiving for your information is alright thanksful for that

none of us trust the fed

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