‘That is not capitalism, that is abusing the market’ — Sen. Ted Cruz blasts BlackRock’s Larry Fink’s ‘woke’ ESG policies

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  • Sen. Ted Cruz reprimanded BlackRock CEO Larry Fink for so-called “woke” investment decisions.
  • Cruz suggested that investment managers like Fink be barred from voting for other people’s stock shares “in order to advance their own political interests”.
  • “It’s not capitalism that’s abusing the market!” Cruz, R-Texas, flared up during an interview with CNBC’s Squawk Box.

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Sen. Ted Cruz on Tuesday rebuked BlackRock CEO Larry Fink for so-called “wake up” investment decisions — and suggested that money managers like Fink vote on behalf of other investors “to advance their own political interests”. be stopped from doing.

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“Because it’s not capitalism, it’s abusing the market!” Cruz, R-Texas, flared up during an interview with CNBC’s “Squawk Box.”

During that interview, Cruz blamed the policies of the Biden administration for the rise in gas prices since President Joe Biden took office in January 2021.

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But Cruise also took aim at Fink, whose company is the world’s largest asset manager, and other CEOs, whom he argued have shied away from focusing on increasing profits for shareholders, such as climate change. Curry favored wealthy liberals for taking a stand on social issues like change.

BlackRock did not immediately respond to a request for comment on Cruz’s comments.
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In a 2020 letter to the CEOs of the companies BlackRock has invested in, Fink highlighted climate change as a problem facing corporations.

“Climate change has become a defining factor in companies’ long-term prospects,” Fink wrote. “I believe we are on the edge of a fundamental restructuring of finance.”

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Cruz repeatedly called for Fink’s support for the ESG – environmental, social and governance issues – in various shareholder votes on Tuesday.

“Does Wall Street also bear some of the responsibility? Absolutely,” Cruz said, referring to the average gas prices of $4.70 per gallon of regular unleaded.

“There’s a Larry Fink overload, every time you fill up your tank, you can thank Larry for heavy and unreasonable ESG pressure,” Cruz said.

He later said, “What Larry Fink is doing in the rise of ESG is phenomenal.”

“And I think there’s a real problem with investing people who passively vote the shares of the funds invested,” Cruz said, referring to index funds that invest in companies belonging to various stock indexes. are.”

“Larry Fink is not using his own money to vote as a shareholder,” Cruz said. “What Larry Fink is doing is taking your shares and my shares and the millions of little old ladies who have invested in the fund, and he’s collecting that huge amount of capital and he’s not maximizing his returns. Because apparently, his fiduciary duty is not the top priority for clients. He is voting for his politics, instead of his politics.”

Cruz said that Fink has “decided that he is more welcome at the ‘New York Country Club’ when he moves in and takes a stand against oil and gas, even if it reduces the returns on the accounts he manages.” And even if it’s destroying jobs, helping America the enemy, and hurting America.”

He added that money managers who vote on shareholder matters based on their political interests rather than investors’ need for more scrutiny.

“It is not capitalism that is abusing the market,” the senator said.

In January, in his annual letter to the CEO, Fink wrote, “Stakeholder capitalism is not about politics. It is not a social or ideological agenda. It is not ‘awake’.” ,

“This is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers and communities on which your company depends. This is the power of capitalism,” Fink wrote.

Credit: www.cnbc.com /

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