Photo: Bloomberg TV
The FT’s Shahien Nasiripour in Washington and Dan McCrum in New York report Treasury Secretary Tim Geithner spoke with BlackRock CEO Larry Fink 49 times over the course of 18 months, citing government records. They also note Fink was the second person Geithner called the moment a debt deal had been reached in the summer of 2011, after Fed Chairman Ben Bernanke. Geithner put in calls later that day to Lloyd Blankfein, Jamie Dimon, then-GE CEO Jeff Immelt and Warren Buffett.
Nasiripour adds some additional context on the pair’s interactions:
The close relationship between Mr Fink and Mr Geithner, which dates back to Mr Geithner’s days heading the Federal Reserve Bank of New York between 2003 and 2009 reflects how governments have turned to the asset manager as a trusted adviser after the financial crisis.
BlackRock helped the Fed manage the securities it acquired through its bailout of AIG and advised on its rescue of Citigroup. It has counselled European governments struggling with faltering lenders and has provided services to US government agencies, ranging from monitoring Fannie Mae and Freddie Mac the mortgage giants, to valuing toxic securities acquired by the National Credit Union Administration.
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