Elizabeth Warren grills Janet Yellen on ‘too-big-to-fail’ blackrock

At a hearing by the Senate Banking Committee, Vernen noted that the Federal Reserve began designating very large banks as “very large-failing,” giving them strong oversight of the Congress-Franc Act given by Congress. The bill, which was drafted in the wake of the 2008 financial crisis, created the Financial Stability Oversight Council, a system that could give special scrutiny to systematically important banks – people with assets of more than 50 50 billion at the time.

So why not Blackrock (B.L.K.), Which oversees 180 folds of wealth, too destined to fail?

“In terms of asset management, instead of focusing on companies’ positions, I think it’s important to focus on such activity and consider what the appropriate restrictions are.” “It’s not clear to me that designation is the right tool.”

Vern Run had none of that. Isn’t that the position that oversees the Fed, she withdrew? And since BlackRock is not hired, it doesn’t have additional verification, she noted.

‘BlackRock is not a bank’

BlackRock, in response, noted that the money it manages does not belong to the company – and two-thirds of its managed assets remain for retirement savings.

The company said, however, that it supports regulatory reform.

Well-functioning capital markets are critical to building a resilient economy that allows more people to experience economic well-being, the company said in a statement. “We support financial regulatory reforms that increase transparency, protect investors and facilitate responsible growth.”

BlackRock noted that regulators around the world have examined the asset management industry, concluding that they should be regulated differently from banks.

“BlackRock is not a bank, and as an asset manager, we are a heavily regulated company,” he says.

Yet Yellen acknowledged that she thinks it is “appropriate to appoint institutions whose failure poses a material risk to US financial stability.”

So Warren wanted to know why a trillion-dollar organization like BlackRock wouldn’t risk it if it failed.

Yellen simply replied that the FSOC had investigated BlackRock in the past and would continue to do so in the future.

Response Ren, not very happy with the response, vowed to take more immediate action.

“While the party is getting stronger, it is the job of the regulators to remove the punchball,” he said. “My view on this is that Congress has provided you with risk monitoring tools and it is important to use them.”