BlackRock is trying to avoid the hot seat as GOP takes power
Published On Jan 14, 2025, 4:00 AM
BlackRock is navigating a challenging political landscape as the GOP prepares to take control of Washington again. The firm recently exited the Net Zero Asset Managers initiative, a UN-supported climate group, amid a wave of withdrawals by other Wall Street banks. This move is seen as a response to the increasing scrutiny of 'woke' investing and environmental, social, and governance (ESG) issues, which have been focal points of GOP criticism. BlackRock is also engaged in discussions with the FDIC regarding its involvement with banks, with implications for its operational strategies. The company, which manages approximately $11 trillion in assets, is expected to face greater political challenges as GOP leadership may lead to increased oversight of its business practices, particularly regarding ESG standards.
Stock Forecasts
BLK
Negative
Given the political challenges BlackRock is facing, especially from the Republican party's negative stance on ESG investing, along with potential regulatory implications, investors may view this as a rocky period for BlackRock. The firm's withdrawal from the climate group could mitigate some backlash but may also affect its standing with socially responsible investors. Hence, there could be downward pressure on its stock in the near term.
Related News
A standoff between BlackRock and the FDIC is dragging into 2025
Dec 31, 2024, 10:52 AM
A clash between BlackRock and the FDIC over the money manager’s holdings of US banks will play out in the waning days of President Joe Biden’s administration.
A standoff between BlackRock and FDIC is dragging into 2025
Dec 31, 2024, 10:52 AM
A clash between BlackRock and the FDIC over the money manager’s holdings of US banks will play out in the waning days of President Joe Biden’s administration.
Madoff fraud victims get $4.3bn as fund completes payouts
Dec 30, 2024, 9:17 PM
Victims of one of the biggest frauds in US history set to recover more than 90% of proven losses.