Black Rock has really played this crisis like a fiddle.
After savvy management allowed the company to avoid, and even profit, during the crisis, they then bagged a whole host of government-related work helping dig the U.S financial system out of its hole.
The company could now enter into the credit ratings space, helping state regulators understand the risk behind mortgage-backed bonds held by insurance companies.
WSJ: The money manager and risk-advisory outfit is among a handful of firms that have talked with officials from the National Association of Insurance Commissioners lately about possibly taking on a slice of work now done by the major ratings firms, according to regulators and an official at the NAIC.
A switch away from the raters — which a key group of regulators is expected to vote on next week — would mark yet another power shift on Wall Street in the wake of last fall’s market swoon, as regulators and others continue to pinpoint culprits even as times have improved.
BlackRock’s expertise in the bond world last year won it jobs helping the government assess complex securities at collapsed Bear Stearns, nearly collapsed American International Group Inc., and mortgage giants Fannie Mae and Freddie Mac. It also is one of the fund managers in the Treasury’s Public Private Investment Program.