BlackRock Is Focus of Yellen-Warren Clash on Tough Oversight
- Treasury chief hints FSOC should look at industry, not firms
- Yellen says asset managers are on risk council’s agenda
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BlackRock Inc. became the focus of a Wednesday clash between Janet Yellen and Elizabeth Warren, with the Treasury secretary suggesting she may oppose singling out the world’s biggest asset manager for tougher oversight.
Senator Warren demanded to know whether Yellen would direct the Financial Stability Oversight Council to consider designating BlackRock as a firm whose failure could threaten the financial system. In response, Yellen indicated that FSOC should focus on risky activities -- citing mutual funds that can face fire sales in a panic -- rather than individual companies.