BlackRock Solutions' big success stokes worry

We've noted that there are a handful of firms whose stature has actually risen during the credit crunch. Along with JPMorgan Chase, BlackRock is near the top of everyone's list. Bloomberg reports, "In the unfolding credit crisis, BlackRock Solutions has become the dominant player in evaluating and pricing distressed assets such as mortgage-backed securities by winning more contracts from the government, investment banks and insurance companies."

In fact, BlackRock Solutions has become the company's fastest growing unit, with contracts from the Fed and Treasury "to manage $130 billion in distressed debt formerly on the books of investment bank Bear Stearns Cos. and crippled financial giant AIG." But as the company manages hundred of millions for the government, there are issues about transparency. Some congressmen are concerned about the government's willingness to award this work to BlackRock without any competitive bidding. It seems a little too cozy for some. This may be an opportunity for Goldman Sachs, PIMCO and other competitors. 

For more:
- here's the Bloomberg article

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