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I knew it was tied to DEI but I never understood exactly how they make their money, I guess only by client fees and they are too big too fail somehow? Thanks f

• flanked-evergl 2y ago
  BlackRock's revenue comes from financial services. You pay them to invest your pension, they charge you based on how many of your assets are under their management, they don't get a performance-based fee. Currently, they have 9.101 trillion USD under management. This is not their money, this is the money of their clients, but their clients pay them, and they take the voting rights associated with the shares that they manage. Technically, if your investment does well, they have more assets under managemnt, and they earn a larger fee, but in practice they can just increase their rate because the people using them aren't shopping around anyway, and there will always be more money invested through them. In reality, most people are paying BlackRock without ever knowing that they are paying them, and then in addition to paying BlackRock in money they get the benefit of your voting rights, which they can then do with as they see fit. They are power brokers who are paid by the people whose power they are brokering.