Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
A recent correspondence signed by 19 US senators, dated August 4, 2022, has highlighted apprehensions regarding investment powerhouse BlackRock’s fiduciary duties and possible conflicts of interest. The senators are questioning whether BlackRock is placing its climate initiatives above the interests of US pensioner retirement funds, as indicated in the publicly available document.
The senators pointed out that according to US law, fiduciaries are required to act in the best interests of their clients and maintain principles of good faith and trust. The letter alleges that BlackRock may be bypassing optimal investment returns and swaying votes using the hard-earned money of citizens across various states.
The document features a letter from BlackRock’s Chief Client Officer, Mark McCombe, directed to several US state officials. In this letter, McCombe detailed the company’s stance on energy investments related to pension funds. However, the senators perceive discrepancies between McCombe’s assertions and BlackRock’s earlier positions.
Prominent signatories of the letter include Mark Brnovich, the Attorney General of Arizona, Steve Marshall, the Attorney General of Alabama, and Ken Paxton, the Attorney General of Texas.
Related Posts
The senators express doubt regarding BlackRock’s public pledge to address climate change and its objective to achieve net-zero emissions across all managed assets by 2050. The government officials suspect that BlackRock’s position might serve as a facade to promote its favored climate policies while pushing for a net-zero future.
The letter notes that BlackRock’s actions are not without precedent, which is why numerous US states require fiduciaries to confirm pertinent investment facts. The senators stress the necessity of ensuring that fiduciaries prioritize accurate information for the benefit of investors.
<pReferencing the International Energy Agency, the senators further emphasize that the commitments made by several governments to attain net-zero emissions often lack the solid and credible policies needed to realize these goals. The Agency’s remarks imply that many pledges do not include the essential concrete measures for execution.
The senators also assert their authority, stemming from their election by US citizens, claiming that their decisions carry the “force of law.” This assertion serves as a reminder that financial institutions like BlackRock should not overshadow their responsibility to protect citizens’ interests.
In summary, the senators’ letter raises significant inquiries regarding BlackRock’s investment strategies, fiduciary obligations, and alignment with climate objectives. As these issues gain prominence, investors and stakeholders are looking forward to further developments that will clarify the ramifications of these allegations.
The post US Senators Raise Concerns Over BlackRock’s Investment Practices appeared first on BitcoinWorld.
