Fink Sees More Systemic Risk Than the VIX Would Have You Believe

Larry Fink, who runs the world’s largest asset manager, isn’t calling for a sharp correction in global markets, but he sees how one could happen.

The BlackRock Inc. chief said a political event could cause “a pretty large setback” and that if volatility rose to normal levels, there could be as much systemic risk as in 2007, the early days of the financial crisis. Fink illustrated a possible major political event with the example of Richard Nixon’s resignation in 1974 following the Watergate scandal.