STT - Regulators Eye Big Three: Tighter Oversight of BlackRock Vanguard State Street On Passive-Investing Mandate | Benzinga
Banking regulators are investigating whether index-fund giants BlackRock Inc (NYSE:BLK), Vanguard, and State Street Corporation (NYSE:STT) adhere strictly to their passive roles in U.S. bank investments.
These firms manage over $23 trillion, much of it in funds mirroring indexes like the S&P 500.
BlackRock and Vanguard possess over 10% of shares in numerous banks, a threshold usually indicating a controlling interest, while State Street holds substantial stakes. Regulators are vigilant due to banks’ vital economic role.
Currently, major asset managers enjoy exemptions from stringent banking rules as long as they maintain ...