BlackRock was given a new deadline of February 10 by the Federal Deposit Insurance Corporation to settle an issue with oversight of the asset manager’s investments in FDIC-regulated banking organisations, according to a story published by Bloomberg News on Sunday. The report cited three individuals who were familiar with the case.
The report indicated that the Federal Deposit Insurance Corporation (FDIC) might start investigating BlackRock and seek further details if the company fails to adequately address the issues.
According to the article, the FDIC took this action after BlackRock failed to meet a deadline that was set for January 10th by the FDIC.
Although BlackRock did not immediately reply to a request for comment on Sunday, the Federal Deposit Insurance Corporation (FDIC) declined to comment.
BlackRock asked the Federal Deposit Insurance Corporation (FDIC) to extend its deadline for agreeing on the oversight of the asset manager’s investments in FDIC-regulated banks until March 31, as stated in a letter to regulators seen by Reuters on Thursday.
For several months, the Federal Deposit Insurance Corporation (FDIC) and the leading managers of index-based mutual funds and exchange-traded funds have been locked in a conflict regarding the regulations that apply to their passive investments in banks monitored by the FDIC. This letter represents the most recent development in their ongoing dispute.
In late December, Vanguard Investments and the Federal Deposit Insurance Corporation (FDIC) finalized a passivity agreement. Following this, the FDIC promptly asked BlackRock to sign a comparable agreement by the January 10th deadline.
BlackRock, Vanguard, and State Street are estimated to collectively manage approximately $26 trillion in assets. Since the 2009 financial crisis, investors have increasingly allocated funds to their low-cost index options. Consequently, these three firms have emerged as the predominant owners of the largest corporations in the United States.
Salman Ahmad is known for his significant contributions to esteemed publications like the Times of India and the Express Tribune. Salman has carved a niche as a freelance journalist, combining thorough research with engaging reporting.
