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BlackRock (BLK) Purchases Barclays Fund, Becomes World’s Biggest Money Manager
BlackRock Inc. (NYSE: BLK) yesterday (Friday) announced that it will pay $13.5 billion for Barclays Global Investors (BGI), Barclays PLC’s (NYSE ADR: BCS) investment unit. The deal makes BlackRock the largest money manager in the world with a combined market value of about $34 billion.
The purchase will include $6.6 billion in cash and the rest in shares. Barclays will own nearly 20% of BlackRock as a result of the deal. Bank of America Corp. (NYSE: BAC), which acquired a 49% stake in BlackRock through its purchase of Merrill Lynch, will see its stake in the company dwindle to just under…
15Jun2009 | Money Morning | 0 comments | ContinuedInside Wall Street: A Potential Pandemic Festers Underneath BlackRock Conflicts
The U.S. Treasury Department recently announced it has preliminarily granted BlackRock Inc. (NYSE: BLK), a mega-money-management and risk-advisory firm, a second-round interview to potentially buy toxic assets from beleaguered U.S. banks. The Treasury’s plan was to let a chosen few investment firms borrow cheaply from the Fed in order to massively leverage up their capital pools to purchase toxic assets, and then to backstop almost all potential losses with taxpayer money.
This plan was itself crafted in large measure with help from BlackRock.
It’s as if the moral hazards of cronyism, leverage, laissez-faire government and the doctrine of too-big-to-fail never happened.
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