Does BlackRock have a conflict-of-interest?

The investment powerhouse BlackRock is essentially one of the government's top investment managers, which some suggest might poses some conflict of interests, given that its main business is to manage money for private interests. CEO Larry Fink has reportedly suggested that there is no conflict-of-interest as long as the firm doesn't engage in proprietary trading.

Still, a Reuters columnist takes issue. "That's a rather narrow view of what constitutes a potential conflict of interest," Matthew Goldstein writes. "Fink apparently discounts the information advantage that BlackRock gets from its extensive government work--which also includes assignments for several foreign governments--and how that may put the money manager in a better position than its competitors to make investment decisions."

The firm may have gleaned a lot of info on distressed securities. Perhaps some internal firewalls would be a good idea.

For more:
- here's the column

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