The drama over passivity agreements regarding large firms’ stakes in bank stocks continues, and it could trigger sweeping changes for the industry.
Over the weekend, BlackRock reportedly did succeed in getting the Federal Deposit Insurance Corp. (FDIC) to push back its deadline on the agreement — but only partially. The FDIC granted BlackRock a new deadline of Feb. 10, according to Bloomberg, far from the end-of-March deadline the firm wanted.
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However, the agency is also taking a firmer hand with BlackRock, as Bloomberg also reports that it may open an investigation into BlackRock and demand more information if it doesn’t make sufficient progress toward resolving the issue.
Vanguard signs passivity agreement
BlackRock, Vanguard and...
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