•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Lawrence Fink From Kirsten Bischoff, Opalesque New York:

Globally, politicians are doing more damage to the economy than any financial entity. This was part of the message BlackRock Chairman and CEO Lawrence Fink made sure he got across during the firm’s second quarter earnings call with analysts on Wednesday. With the European sovereign debt issues still being pushed off, and the looming deadline over the US debt ceiling, Fink spoke about the devastating effects that political interference and political power plays are having on the investing public.

"More than ever, the global and political and economic issues investors are facing is creating confusion, uncertainty and ultimately, retrenchment," he said. Fink’s comments are based on the increase the firm has seen in clients moving to de-risk their portfolios – activity that actually saw the firm set record inflows of base fees, as clients increasingly seek advice on the volatile markets and the uncertainty surrounding government actions. The firm’s operating income improved by 19% compared to the second quarter of 2010 and improved 8% over the previous quarter – primarily driven by these base fees.

While Fink says that he disagrees with clients who are looking to de-risk their portfolios, "what is driving much of the confusion and uncertainty is politics globally."

Such investor jitters, have been detrimental to many areas of the financial industry, and even hedge funds, which had seen a r......................

To view our full article Click here