BlackRock Profits At Bear's Expense
BlackRock boss Larry Fink may want to thank the Federal Reserve for handing him a fistful of new business yesterday.
As part of JPMorgan's sweetened takeover bid for beleaguered brokerage giant Bear Stearns, the Fed tapped BlackRock to manage the $30 billion portfolio of mostly battered mortgage securities that it is taking on to fund the deal.
That should give BlackRock at least $54 million each year that it manages the assets, based on the average fee the firm typically charges for managing fixed-income portfolios. Analysts believe the firm's fees could be much higher for this assignment, given the complexity of the portfolio.





Loading comments…
New York Post | ZACHERY KOUWE | March 25, 2008 07:41 AM