Imagine if you had billions of dollars of other peoples’ money at your disposal to invest and instead of investing it prudently to provide the maximum safest returns you can find, you decide to blow it to advance your own “environmental, social and governance”(ESG) objectives. Imagine that this virtue-signaling power trip at the expense of those to whom you owe a high degree of care, cost clients $1.7 trillion dollars in over a six-month period. Well, you don’t actually have to consider this a hypothetical, that is the story of BlackRock as I noted last month.
The question in my mind for the two years I have been warning about the loss to beneficiaries of such mismanagement is whether there will be any consequences for such conduct, and it looks as though there will be. Big time.https://the-pipeline.org/another-bad-day-at-black-rock/
Clarice goes on to write about the coming backlash from various state attorney’s general.
Recently the state of West Virginia announced it would no longer do business with companies that boycott the fossil fuel industry—which includes BlackRock. The ban will “cost the firms $18 billion a year” according to West Virginia’s treasury office. That business loss is now potentially in the trillion-dollar range as 19 state attorneys general point to Fink’s record and assert the company he heads is “an explicit leader in the such to ‘retire fossil fuels’”. The letter to BlackRock Chairman Fink reads like a legal pleading with very extensive factual and legal citations. It begins :https://the-pipeline.org/another-bad-day-at-black-rock/
Further in the letter.
The letter seeks a response by the 22nd of this month. The tenor of this well-documented letter and its extensive citations of fact and law lead me to believe, BlackRock will be forced to defend multiple lawsuits unless it takes significant steps to abandon both its ESG investment strategies and its extensive activities to force net-zero emissions at the expense of those whose money they manage.https://the-pipeline.org/another-bad-day-at-black-rock/