1. BlackRock is the world’s largest asset manager, with US$8.59 trillion in assets under management as of December 31, 2022. This means that BlackRock owns or manages a significant share of many companies, including some of the biggest and most influential ones in various sectors and industries. For example, BlackRock is the largest shareholder of Apple, Microsoft, Amazon, Facebook, Google, and Tesla. It also owns parts of CNN and FOX, meaning it can unilaterally influence bipartisan information flow.
2. BlackRock also provides risk management and advisory services to governments and institutions and has access to a lot of data and information through its Aladdin software platform Aladdin is a software tool that can track and analyze trading and monitor a whopping US$18 trillion in assets for 200 financial firms; even the Federal Reserve and European central banks use it. This gives BlackRock a unique insight into the financial markets and the global economy, as well as a potential advantage over its competitors and regulators.
3. BlackRock has close ties with political elites and policymakers in many countries. Since 2004, researchers note, BlackRock has hired at least 84 former government officials, regulators, and central bankers worldwide. This can create conflicts of interest and official corruption, as BlackRock can lobby for favorable policies or regulations or avoid scrutiny or accountability. For example, BlackRock has successfully fought for its designation as a systemically important financial institution, keeping its trillions outside the Dodd-Frank regulatory perimeter. The Treasury Department official leading efforts to relax that designation and keep asset managers outside its grip is Craig Phillips, a former BlackRock executive.
4. BlackRock also plays a key role in advising governments and institutions during times of crisis or uncertainty. For example, BlackRock was involved in some of the major bailouts and stimulus programs during the financial crisis of 2008 and the COVID-19 pandemic. It also helped create Canada’s Infrastructure Bank, a public-private partnership for low-cost loans for road and bridge projects, which BlackRock advised on creating and helped staff with friendly executives. BlackRock subsequently stands to gain from the bank it helped construct.
