Sunday, May 31, 2020

As the Fed starts using CARES Act loans, BlackRock gains

https://prospect.org/coronavirus/unsanitized-blackrock-buyer-and-seller-federal-reserve-bailout/

 

BlackRock is the agent for the Special Purpose Vehicle that the Federal Reserve System created to buy bonds and exchange-traded funds of bonds (ETFs) on the secondary market. They are primary trading ETFs that they themselves issue!

 

Of the $1.58 billion in holdings, $746 million come from BlackRock ETFs. That’s about 47 percent of the total. So BlackRock, as the sponsor for the Fed, made 47 percent of its purchases in BlackRock ETFs. A separate chart lists aggregate holdings of $1.31 billion. BlackRock ETFs make up about 48 percent of them."

 

Charlie Cooper

“We may have democracy, or we may have wealth concentrated in the hands of a few, but we can’t have both.” – Louis Brandeis

 

 

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