D H
Oct 29 · Last update 1 mo. ago.

Never mind the billionaires, should BlackRock be better regulated?

BlackRock is one of the largest global investment management firms and one of the United States’ largest corporations by revenue. The problem is that the company is one of the largest investor’s in deforestation and fossil fuels, being the world largest investor in coal plant developers for example, while BlackRock’s investment strategy has been criticised as having a detrimental effect of society, such as housing and the effect this has had on affordability. The company has also received criticism for monopolistic investing practices and being too involved in Chinese markets and as a result being too close to the Chinese government. Is it time for massive corporations like BlackRock to face heavier regulation? Or would regulating a company the size of BlackRock have negative economic repercussions, i.e. are they too big to fail? Could there be another way to use the power of such a large company to fix the problems they may have helped exacerbate?
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Us Vs Them: The web of corporate America
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Yes

BlackRock is the single largest investor in the destruction of the planet's forests and the largest money contributor to fossil fuels industry, and we all have ties to BlackRock, mostly through its connections to the largest banks and pension funds internationally, but also due to extensive investments in nearly all industries. Accusations of "circular ownership" have been thrown at Goldman Sachs, JP Morgan, Black Rock and other company's, which allows these banks and financial giants to act as an effective financial monopoly without seeming like one, for this reason BlackRock is often referred to as a "shadow monopoly" or a "shadow bank". Likewise, BlackRock is often one of the largest shareholders in major competing brands (for example Pepsi-Co and Coca-Cola) cementing these monopoly accusations even more, but more worryingly BlackRock is a major shareholder in a huge array of media companies including social media tech companies.

Whether through direct or indirect ownership there is hardly any industries exempt from their control, with around $9 trillion of assets around the globe, BlackRock holds more assets than the GDP of every country on the planet other than the US and China. The only solution to such great financial power is stronger regulation, in 2020 US Representatives Katie Porter and Jesús García proposed legislation to better regulate shadow banks like BlackRock, but this is only a start, due to the phenomenal reach of this company efforts such as this should be taking place globally. The company uses its financial power to maximize profits for shareholders often at the expense to the environment and society at large, for example assetizing housing markets and driving up the cost of real estate pricing out more and more families as the property market becomes increasingly speculative.

BlackRock also received various criticism for taking advantage of their extensive financial ties to the US Federal Reserve System to profit from the US government's emergency pandemic efforts. But most importantly BlackRock have an ominous detriment to the environment that threatens human civilization as we know it. Climate change and poverty cannot be addressed with shadow monopolies like BlackRock investing in all industries that put profits above all else, there are few that have the financial power to oppose such negative influences on this world, we cannot let groups like this accumulate more wealth. We desperately need to regulate Blackrock as they are the main driving force of climate change inaction and deforestation of the Amazon, blindly adding fuel to the fire in the name of profit.

newrepublic.com/article/158263/blackrock-climate-change-fossil-fuel-investments lewrockwell.com/2021/04/bill-sardi/who-runs-the-world-blackrock-and-vanguard clarion.causeaction.com/2021/10/29/who-owns-the-world marktaliano.net/the-media-monopoly-the-same-shady-people-own-big-pharma-the-media

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D H
Nov 14
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DH edited this paragraph
BlackRock is the single largest investor in the destruction of the planet's forests and the largest money contributor to fossil fuels industry, and we all have ties to BlackRock, mostly through its connections to the largest banks and pension funds internationally, but also due to extensive investments in nearly all industries. Accusations of "circular ownership" have been thrown at Goldman Sachs, JP Morgan, Black Rock and other company's, which allows these banks and financial giants to act as an effective financial monopoly without seeming like one, for this reason BlackRock is often referred to as a "shadow monopoly" or a "shadow bank". Likewise, BlackRock is often one of the largest shareholders in major competing brands (for example Pepsi-Co and Coca-Cola) cementing these monopoly accusations even more, but more worryingly BlackRock is a major shareholder in a huge array of media companies including social media tech companies.

No

Companies like BlackRock are too big to fail, restricting them or regulating them to heavily could lead to job losses, BlackRock employs thousands of employees and has over 70 offices and operates in 100 countries around the world, or even cause a financial crash. What's more the company has its uses, being pivotal to the global economy with its Aladdin system monitoring 7% of the world's financial assets, while the U.S. Treasury Department has used BlackRock to analyse, price and manage the toxic mortgage assets that caused the 2008 financial crisis. Furthermore in recent years BlackRock have been expanding their sustainable and environment conscious investments and taking a stand of various social issues such as race and gender diversity and even gun violence.

Regulating a company as big as BlackRock may do more harm than good, while pressure should be applied as they clearly need to be leading the global divestment from coal, BlackRock are in the best place to make the biggest changes and have already started. Likewise at the recent G20 summit global leaders decided on a minimum global corporate tax rate of 15% to minimise tax avoidance by corporations, reform is coming naturally and democratically, these improvements are just incremental. But this should not detract from the positive effect companies like BlackRock have had on the global economy, indeed they are in this position they are in as a result of increasing the efficiency of global finance, trade, and economics.

forbes.com/sites/greatspeculations/2017/07/18/blackrocks-current-share-price-doesnt-capture-its-long-term-growth-prospects/?sh=5e020215ea95 wsj.com/articles/SB124269131342732625 cbsnews.com/news/blackrock-unveils-line-of-gun-free-investment-products fastcompany.com/90692067/g20-global-minimum-tax-rate-explained

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D H
Nov 11
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DH edited this paragraph
Companies like BlackRock are too big to fail, restricting them or regulating them to heavily could lead to job losses, BlackRock employs thousands of employees and has over 70 offices and operates in 100 countries around the world, or even cause a financial crash. What's more the company has its uses, being pivotal to the global economy with its Aladdin system monitoring 7% of the world's financial assets, while the U.S. Treasury Department has used BlackRock to analyse, price and manage the toxic mortgage assets that caused the 2008 financial crisis. Furthermore in recent years BlackRock have been expanding their sustainable and environment conscious investments and taking a stand of various social issues such as race and gender diversity and even gun violence.

Us Vs Them: The web of corporate America

More than addressing one corporation like BlackRock the whole finance industry needs better regulation, but the corporate capture of politics may prove this to be futile. While regulation is the most logical first step in attempting to solve this issue, a grassroots stand against the corporate capture of government and global economics may be the only way to actually fix anything. If you look at who owns BlackRock the largest stake is currently held by Merrill, another financial entity that since 2008 has been merged with the Bank of America Corporation, these financial corporations exist in a stakeholder merry-go-round of a circular monopoly, making it hard to even target who is ultimately responsible.

In addition to all having stakes in each other, these corporations all lobby the government at unprecedented levels, making finance more difficult to regulate. As a result policy has been distinctly pro-corporation since at least Reaganism and this is unlikely to change no matter how popular the movement to regulate becomes. More than just regulated though BlackRock needs to be broken up, but breaking up a corporate entity like BlackRock may allow a competitor to step in and fulfil the same roll. The world's second largest provider of exchange-traded funds behind BlackRock is Vanguard, itself managing $7 trillion in global assets, and simply dismantling a company like BlackRock would just allow another company like Vanguard to absorb BlackRock and just further consolidate the market. The only real answer is to choke these companies out at a grassroots level, route completely around them, and force divestment from them.

wallstreetzen.com/stocks/us/nyse/blk/ownership en.wikipedia.org/wiki/Merrill_(company) en.wikipedia.org/wiki/Bank_of_America aim4truth.org/2018/05/29/we-the-people-vs-them-the-corporations corpgov.law.harvard.edu/2012/01/05/the-corporate-capture-of-the-united-states americanprogress.org/article/corporate-capture-threatens-democratic-government

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Latest conversation
D H
Nov 11
Approved
DH edited this paragraph
In addition to all having stakes in each other, these corporations all lobby the government at unprecedented levels, making finance more difficult to regulate. As a result policy has been distinctly pro-corporation since at least Reaganism and this is unlikely to change no matter how popular the movement to regulate becomes. More than just regulated though BlackRock needs to be broken up, but breaking up a corporate entity like BlackRock may allow a competitor to step in and fulfil the same roll. The world's second largest provider of exchange-traded funds behind BlackRock is Vanguard, itself managing $7 trillion in global assets, and simply dismantling a company like BlackRock would just allow another company like Vanguard to absorb BlackRock and just further consolidate the market. The only real answer is to choke these companies out at a grassroots level, route completely around them, and force divestment from them.
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