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Blackrock even manages a large part of Jerome Powell's, the chair of the Federal Reserve, money. It appears to be a conflict of interest but maybe I don't under

Blackrock even manages a large part of Jerome Powell's, the chair of the Federal Reserve, money. It appears to be a conflict of interest but maybe I don't understand the intricacies of the monetary system. "The Fed Is Subsidizing the Money Market Funds Operated by Larry Fink’s BlackRock as BlackRock Manages a Big Part of Jerome Powell’s Wealth" [0] [0] https://wallstreetonparade.com/2021/10/the-fed-is-subsidizing-the-money-market-funds-operated-by-larry-finks-blackrock-funds-as-blackrock-manages-a-big-part-of-jerome-powells-wealth/ https://wallstreetonparade.com/2021/10/the-fed-is-subsidizin...

boeingUH60 3y ago
Virtually every rich person in America might have some funds with BlackRock, whether directly or indirectly. The site you linked is doing a favorite exercise of conspiracy therorists; A is related to B which is related to C which is related to D. Therefore, A and D have conspired, despite in reality not having anything to do with each other.
- coliveira 3y ago
  And you are assuming that the problem is a real conspiracy theory. There is no need to assume any conspiracy to understand that the system is crooked. Even if it is "normal" to have A linked to B then linked to C, with A benefiting C, there is a moral hazard in a system that makes this possible.
- celtoid 3y ago
  Powell and Blackrock have something to do with each other. It's reasonable to assume a conflict of interest. "Fed Chair Powell Has Upwards of $11.6 Million Invested with BlackRock, the Firm that Will Manage a $750 Billion Corporate Bond Bailout Program for the Fed " [0] [0] https://wallstreetonparade.com/2020/05/fed-chair-powell-has-upwards-of-11-6-million-invested-with-blackrock-the-firm-that-will-manage-a-750-billion-corporate-bond-bailout-program-for-the-fed/ https://wallstreetonparade.com/2020/05/fed-chair-powell-has-...
  - boeingUH60 3y ago
    Thanks for repeating the same thing, I guess..
    - celtoid 3y ago
      You appeared to claim the Blackrock and Powell had nothing to do with each other. I was correcting the error.
    - gottorf 3y ago
      I think the contentious point is not that "Fed Chair Powell Has Upwards of $11.6 Million Invested with BlackRock", it's that concurrently "the Firm that Will Manage a $750 Billion Corporate Bond Bailout Program for the Fed". At most one of those two things should be true for there to be no conflict of interest.
gruez 3y ago
>It appears to be a conflict of interest [...] The fed choosing an asset management firm is similar to choosing a vendor. That in itself isn't a "conflict of interest". That only arises if there's reason to believe that the Fed or its officials are making decisions that benefit themselves personally at the expense of the fed. For instance, if they hold outsized positions in blackrock and chose them despite not being the best choice (eg. vanguard is is cheaper).
- celtoid 3y ago
  The Chairman of The Fed has his assets being managed by a company that the Fed does business with. It's completely reasonable to assume a conflict of interest in this less-than-transparent environment. The upper tiers of power don't deserve the benefit of the doubt.
  - Shrezzing 3y ago
    I agree that it's a conflict of interest, but I'm not sure how the chair of the fed could keep their money without a conflict of interest somewhere, given that their role necessarily has interests in all US financial institutions. For the chair to not have a conflict of interest, they'd need to forfeit all their money, or keep it in cash under their mattress.
    - celtoid 3y ago
      I'm of the opinion that anyone in government or regulatory agencies should be forbidden from conducting any business at all while in office. Put it all into a blind trust. It should be a crime to be a regulator while doing business with the entities one is regulating. As I said, just my opinion.
      - Shrezzing 3y ago
        >I'm of the opinion that anyone in government or regulatory agencies should be forbidden from conducting any business at all while in office. Put it all into a blind trust. Following the Dallas/Boston Fed scandals a couple of years ago, the Fed does enforce this separation of interests, and Powell's money is now held in a blind trust. The trust is managed by Blackrock.

boeingUH60 3y ago

Virtually every rich person in America might have some funds with BlackRock, whether directly or indirectly. The site you linked is doing a favorite exercise of conspiracy therorists; A is related to B which is related to C which is related to D. Therefore, A and D have conspired, despite in reality not having anything to do with each other.

coliveira 3y ago
And you are assuming that the problem is a real conspiracy theory. There is no need to assume any conspiracy to understand that the system is crooked. Even if it is "normal" to have A linked to B then linked to C, with A benefiting C, there is a moral hazard in a system that makes this possible.
celtoid 3y ago
Powell and Blackrock have something to do with each other. It's reasonable to assume a conflict of interest. "Fed Chair Powell Has Upwards of $11.6 Million Invested with BlackRock, the Firm that Will Manage a $750 Billion Corporate Bond Bailout Program for the Fed " [0] [0] https://wallstreetonparade.com/2020/05/fed-chair-powell-has-upwards-of-11-6-million-invested-with-blackrock-the-firm-that-will-manage-a-750-billion-corporate-bond-bailout-program-for-the-fed/ https://wallstreetonparade.com/2020/05/fed-chair-powell-has-...
- boeingUH60 3y ago
  Thanks for repeating the same thing, I guess..
  - celtoid 3y ago
    You appeared to claim the Blackrock and Powell had nothing to do with each other. I was correcting the error.
  - gottorf 3y ago
    I think the contentious point is not that "Fed Chair Powell Has Upwards of $11.6 Million Invested with BlackRock", it's that concurrently "the Firm that Will Manage a $750 Billion Corporate Bond Bailout Program for the Fed". At most one of those two things should be true for there to be no conflict of interest.

gruez 3y ago

>It appears to be a conflict of interest [...] The fed choosing an asset management firm is similar to choosing a vendor. That in itself isn't a "conflict of interest". That only arises if there's reason to believe that the Fed or its officials are making decisions that benefit themselves personally at the expense of the fed. For instance, if they hold outsized positions in blackrock and chose them despite not being the best choice (eg. vanguard is is cheaper).

celtoid 3y ago
The Chairman of The Fed has his assets being managed by a company that the Fed does business with. It's completely reasonable to assume a conflict of interest in this less-than-transparent environment. The upper tiers of power don't deserve the benefit of the doubt.
- Shrezzing 3y ago
  I agree that it's a conflict of interest, but I'm not sure how the chair of the fed could keep their money without a conflict of interest somewhere, given that their role necessarily has interests in all US financial institutions. For the chair to not have a conflict of interest, they'd need to forfeit all their money, or keep it in cash under their mattress.
  - celtoid 3y ago
    I'm of the opinion that anyone in government or regulatory agencies should be forbidden from conducting any business at all while in office. Put it all into a blind trust. It should be a crime to be a regulator while doing business with the entities one is regulating. As I said, just my opinion.
    - Shrezzing 3y ago
      >I'm of the opinion that anyone in government or regulatory agencies should be forbidden from conducting any business at all while in office. Put it all into a blind trust. Following the Dallas/Boston Fed scandals a couple of years ago, the Fed does enforce this separation of interests, and Powell's money is now held in a blind trust. The trust is managed by Blackrock.