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BlackRock is hoarding lobbyists. Here because

As a presidential election year arrives in the United States and as lawmakers continue to scrutinize BlackRock's activities, the company is carrying out a significant restructuring in the team that manages relationships with government officials and regulators.
In an internal memo, BlackRock CEO Larry Fink highlighted the growing pressures on the company's reputation while underscoring increasingly complex political challenges.
The bank, with assets of $9.1 trillion, must adapt its strategy and dedicate more resources to address these challenges.
The restructuring involves a reorganization of positions and a new name for the government affairs and public policy group, reflecting the significant pressure BlackRock is under under the public lens.
Over the past two years, especially among representatives of the Republican Party, BlackRock has come under criticism for its investments that take into account environmental, social and corporate governance (ESG) factors.
Critics argue that BlackRock is using its ESG investment criteria in a way that prioritizes addressing the climate crisis or diversity programs in corporate frameworks to the detriment of investors.
This coordinated effort to pressure BlackRock and CEO Larry Fink on ESG strategy has spread to several states, including Florida, Texas, Louisiana, and South Carolina.
The company has defended its actions, emphasizing its fiduciary duty to invest in the best interests of customers.
This years-long saga is internally considered a blow to the company's reputation, causing frustration among employees and attracting more mainstream attention than the company would like.
In an interview with Bloomberg in January, Fink said the attacks on the company and on him personally had become brutal, representing a first in his professional career.
To address this new reality, BlackRock has announced a series of changes within its Institutional Relations group.
Samantha DeZur will be head of regulatory affairs and financial markets policy, Joanna Cound will lead international government affairs and public policy, Rachel Barry will be chief operating officer of global corporate affairs, Kate Fulton will lead industrial affairs, and Bryan Wood will be the person responsible for federal government affairs.
Additionally, BlackRock may face new regulatory challenges.
This month, U.S.
financial regulators announced increased oversight of asset managers and other entities, such as private equity funds.
BlackRock and its counterparts have long lobbied to avoid being labeled “globally systemic financial institutions,” which would lead to more aggressive surveillance.
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Author: A.W.M.

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