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Larry Fink owes investors an apology.
Is Larry Fink a threat to democracy?
As February turns to March, the finance world is waiting with bated breath for one of its most dubious annual traditions: The Larry Fink Annual Letter to CEOs. Since 2012, when the BlackRock chief executive wrote his first letter,
the occasion has come to symbolise the growing threat both to shareholder capitalism and American democracy posed by investment houses' crusade to force the principles of ESG, or "environmental, social, and governance" investing, down the throats of companies, investors, and the public.
ESG first entered the investment and banking mainstream as a survival strategy. In 2009, BlackRock had acquired Barclay's Global Investors Ltd, making it the largest investment firm in the world with
almost $3 trillion in assets under management (AUM),
a sum larger than the total revenue of the US federal treasury. Politically speaking, BlackRock's emergence as an investment superpower could hardly have come at a worse time. Amid the wreckage of the 2008 Financial Crisis and then the ululations of the "Occupy Wall Street" movement, public suspicion of big banks and corporations was at an all-time high. Finance, in particular, became a morality play: financial institutions were the greedy villains, while policymakers played the heroic civic advocates reining them in. For BlackRock, the chances of continuing to grow freely in such a hostile policy climate seemed remote.
Comment: In France just a few weeks ago, 2 million people protested and went on strike, meanwhile just yeseterday in the UK, 500,000 people from a variety of professions - including doctors, the civil service, and lawyers - went on strike over deteriorating working conditions; it's likely one of the reasons a number of European countries are ramming through these anti-protest bills is because they know much more serious civil unrest is up ahead: France enters stage 2 of its multi-nation war games - troops staging mock battles on real city streets & amongst civilians in ominous urban warfare training scenario