Politics
WATCH: BlackRock CEO Larry Fink MELTS DOWN After Red States Divest From Woke Agenda
BlackRock CEO Larry Fink forcefully addressed detractors during the company’s latest earnings call on Friday following the Texas Permanent School Fund’s decision to withdraw $8.5 billion. The significant financial move came in response to the asset manager’s continued ESG activism, signaling a growing tension between state funds and corporate investment strategies influenced by environmental, social, and governance (ESG) criteria.
BlackRock is the world’s largest asset management firm, overseeing assets worth trillions of dollars. It was founded in 1988 by Fink and others. The company initially focused on risk management and fixed-income securities management but has since expanded its offerings to include a wide range of investment and technology services for institutional and retail clients globally.
During the call, an animated Fink expressed his frustration over the politicization of BlackRock’s investment approach. “I’ve spoken before about the fear we see today. Some are stoked by increasingly political polarization in the world,” Fink remarked. He asserted that the industry, with BlackRock at its forefront, has become a focal point for political debate, primarily in the United States.
Critics, particularly from conservative spheres, argue that BlackRock’s ESG focus diverted from traditional investment mandates aimed at maximizing returns. These criticisms have intensified as the 2024 election season approaches, with some GOP politicians labeling Fink and his firm as poster children for “woke” investing.
In response to the accusations, Fink emphasized the importance of separating politics from performance. “Unfortunately, there are still others out there who put short-term politics above the long-term fiduciary responsibilities,” he stated. Fink reinforced that as a fiduciary, his firm’s duty is to prioritize client interests and performance over political considerations. “Politics should never outweigh performance,” he claimed.
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JUST IN: @BlackRock CEO Larry Fink *absolutely lost it* on their latest earnings call, after the Texas Permanent School Fund pulled $8.5 billion from the woke asset manager over their continued ESG activism:
— Will Hild (@WillHild) April 12, 2024
Yahoo finance reported:
Fink didn’t name any US politicians directly but the comments appear to be an unmistakable reference to continued attacks from politicians on the Republican side of the aisle both in Washington and in conservative states like Texas.
Republicans have continued to try and make Fink and his firm into the preeminent example of what they charge is “woke investing” as the 2024 election season continues to heat up.
Fink also says the attacks aren’t working, pointing to an increase in US investments in his company. He says there has been $1.9 trillion in total net inflows from US investors into BlackRock over the last five years and nearly $300 billion in new US investor money that appeared on the company’s books just in the last year…
The new comments came as the world’s largest asset manager reported overall results that included new record levels of assets under management, with the company now managing $10.5 trillion in investor money around the world.
The company’s stock opened down as trading began Friday, falling more than 1%.
The financial showdown unfolds against a backdrop of increasing scrutiny over how investment firms are addressing social and environmental issues. While some view ESG criteria as essential for sustainable investment, others have criticized it as a deviation from the core objectives of asset management.
Fink’s remarks also signal a larger battle brewing over the direction of corporate governance and the role of “woke capitalism” in modern investing strategies. As more states consider following Texas’s lead, the pressure on firms like BlackRock could escalate.
