Back in the United States, Senator Elizabeth Warren clashed with Treasury Secretary Janet Yellen at a hearing of the Senate Banking Committee Wednesday over why the $9 trillion money manager company BlackRock doesn’t face more oversight from the Treasury Department.
Sen. Elizabeth Warren: “Is BlackRock currently designated so that it receives that increased oversight?”
Treasury Secretary Janet Yellen: “It isn’t designated, but I think it’s important to understand” —
Sen. Elizabeth Warren: “So that means it is not receiving the increased oversight from the Fed. Does, potentially, a $9 trillion investment company pose some risk to the American economy if it should fail?”
Treasury Secretary Janet Yellen: “Well, one needs to analyze what the risk is. An asset management company is very different than a bank.”
Sen. Elizabeth Warren: “So, how do you analyze what the risk is, if you’re not actually doing the investigation through FSOC?”
BlackRock is the world’s largest asset manager. It also has close ties to the Biden administration.