BlackRock tells Fed it's not "systemically important"

11/17/2010 | Bloomberg

Robert Connolly, general counsel at BlackRock, and Barbara Novick, vice chairman of the money manager, met with officials from the Federal Reserve this month to explain why the company should not be deemed a "systemically important" financial firm. The executives said that "unlike a bank, an asset-management company acts as an agent for its clients and does not hold investment assets on its own balance sheet," according to the central bank's website. "They also noted that clients can and do replace asset managers, with minimal switching costs, which could reduce the systemic-risk consequences arising from an asset manager falling into financial distress."

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