When interest rates are nailed to the floor, business must go on. Hence the creation of ESG funds, and a whole new market is created to generate more fees for fund companies. WSJ reports:
Few private citizens wield more power in America today than Larry Fink, the chief executive of BlackRock Inc. In pushing companies to embrace climate-friendly policies, that has made him a lightning rod.
The firm he runs manages some $10 trillion for pension funds, endowments, governments, companies and individuals, equal to more than 10% of the world’s gross domestic product in 2020. Its funds are among the three largest shareholders in more than 80% of the companies in the S&P 500.
The WSJ continues:
Laurence Fink got his start on Wall Street at First Boston, where he ran a desk that pooled together mortgages and other loans and sold off pieces of the bundles. While investors snapped up safer tranches of this financial innovation, the riskiest parts stayed on the bank’s balance sheet.
When interest rates fell in 1986, his desk lost $100 million in the second quarter. Mr. Fink was forced to leave.
Read more about the ESG money grab here:
- BLACKROCK’S BITCOIN-ESG PARADOX: You Can’t Have It All
- Who’s the REAL Winner from ESG Investing?
- BLACKROCK’S BILLIONS: Guess Where Those ESG Fees Are Going?
- ESG Ratings Are a Subjective Mirage
- It’s a Trap: High Fees Hamstring ESG Returns
- ESG Funds: You Invest, They Win—Here’s Why
- Wealth Management Pitfall: ESG, Part I
- BlackRock Has Two Sets of Rules for China and America
- EGO: BlackRock CEO Goes Woke with Investor Money
- BlackRock Wants Investors with a “Shared Vision”
- THE GREAT RESET: You Could Be Forced to Rent a House from BlackRock
Action Line: If you need help avoiding the ESG money grab, we should talk.