Blackrock working for Federal Reserve

[pmbug]

...
To address concerns, the contract calls for the New York Fed to make almost all of the buying decisions, with BlackRock executing trades -- removing it from having to pick “winners” and “losers” in the debt markets. State Street Bank will be the custodian of the assets.

“BlackRock is acting as a fiduciary to the Federal Reserve Bank of New York,” the firm said in a written statement. “As such, BlackRock will execute this mandate at the sole discretion of the bank, and in accordance with their detailed investment guidelines, in order to provide broad support to credit markets and achieve the government’s objective of supporting access to credit for U.S. employers and supporting the American economy.”

The document also outlines an “ethical wall” segregating the BlackRock team managing the government-bond operations from personnel throughout the rest of the firm’s trading, brokerage and sales operations. Staffers working on BlackRock’s Fed-backed program won’t be allowed to provide investment advice to anyone but the special-purpose vehicle created by the Fed, known as Corporate Credit Facilities LLC.

BlackRock will run the government’s bond-buying program through its Financial Management Advisory Group, which is separate from its other investment and advisory services.
...

https://news.bloomberglaw.com/banki...e-as-fed-adviser-confers-more-clout-than-fees

...
But BlackRock’s contract with the Fed also acknowledges that senior executives “may sit atop of the information barrier” and “have access to confidential information on one side of a wall while carrying out duties on the other side.” ...

https://www.bloomberg.com/news/arti...helping-the-fed-with-bond-buying?srnd=premium

 

[rblong2us]

But BlackRock’s contract with the Fed also acknowledges that senior executives “may sit atop of the information barrier” and “have access to confidential information on one side of a wall while carrying out duties on the other side.” ...

fortunately its only 'may', not 'will' sit atop the information 'barrier'

The top feeders will always know what is planned and place their bets accordingly.

 

[pmbug]

I'm guessing Blackrock senior executives' children and/or extended family are going to be investment geniuses far outperforming the market.