Seeking Alpha

Two U.S. pension funds sue BlackRock (BLK), alleging the asset manager systematically "looted"...

Two U.S. pension funds sue BlackRock (BLK), alleging the asset manager systematically "looted" securities lending revenues from its iShares ETFs by taking 40% of the money for itself. One academic says 20% is a more typical cut, and 35% would be considered "high."
Comments (11)
  • deercreekvols
    , contributor
    Comments (5145) | Send Message
     
    I was unable to access the article to read which pension funds are suing BlackRock. A 40% cut seems completely out of the question. Did BlackRock believe that they wouldn't be caught?
    Not only is a lawsuit in order, but the SEC or DOJ should be investigating this. Jail time for the "managers" would discourage any other outfit from doing the same thing.

     

    Any updates to this market current, including the names of the pension funds, would be appreciated.

     

    I would wager that practices like this take place more than than is reported.
    3 Feb 2013, 03:35 PM Reply Like
  • DoctoRx
    , contributor
    Comments (1280) | Send Message
     
    http://reut.rs/WIe1Bl
    3 Feb 2013, 05:31 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5145) | Send Message
     
    For those interested.

     

    http://yhoo.it/VxvWaC

     

    Went to Yahoo Finance for this. Pension funds are named. Yahoo of all places!
    3 Feb 2013, 03:56 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (2000) | Send Message
     
    Standard practice: Another Robert Miller of the Miller Capitals, Inc., movie premiered in September 2012, starring the irresistible Richard Gere.

     

    Poor 'Julie' was killed though, but it was a Good show though!
    3 Feb 2013, 04:27 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2472) | Send Message
     
    So basically, your money is invested in the fund only on paper. The money is taken out of the fund and put somewhere else for themselves to invest and reap the benefit

     

    So they sort of are investing on margin except they are borrowing from you and they pay you no interest on what they borrow. SOUNDS AWESOME!
    3 Feb 2013, 04:31 PM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1428) | Send Message
     
    They screwed me by ending their NG ETF. I don't think they did anything but put the money I gave them in Treasuries and then took my losses. This also happened in Canadian Venture funds.
    3 Feb 2013, 05:18 PM Reply Like
  • wheelz23
    , contributor
    Comments (49) | Send Message
     
    Unions suing banksters...the only thing missing from this story are the politicians.
    3 Feb 2013, 05:26 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Larry Fink: skimming investors since 1976.
    3 Feb 2013, 06:53 PM Reply Like
  • Skull & Bones
    , contributor
    Comments (59) | Send Message
     
    There are two absolutes in the Land of the Free and Home of the Brave.......1) The Banksters ALWAYS win......2) They NEVER go to jail.
    3 Feb 2013, 08:43 PM Reply Like
  • davidbdc
    , contributor
    Comments (3141) | Send Message
     
    Call me crazy, but I thought pension managers are paid pretty hefty pay packages to invest the money themselves?

     

    Why pay them if all they are doing is turning the money over to others?

     

    Don't need a pension manager to do that.
    3 Feb 2013, 11:35 PM Reply Like
  • shourey
    , contributor
    Comments (122) | Send Message
     
    If I am not mistaken, 'loot' in various shapes and forms, is the principle upon which many ( not all ) mutual fund and ETF companies , operate. They just can decide how much 'loot' they want and then take that % away from deposited funds in forms of fees etc.
    4 Feb 2013, 10:44 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|