With Blackrock buying Barclay's Global Investors from Barclay's PLC for $13.5 Billion, its really Blackrock having Barclay's over a barrel. Barclay's in dire need to rash cash to repair its balance sheet really couldn't afford to sell to anyone accept BlackRock. This is a great deal for Blackrock on the surface, as they will be almost double the size of their nearest rivals State Street Advisers and Fidelity.
But whats really worrisome is the near size of Blackrock after this deal is completed. Do we really need someone who is managing this much amount of money, with free reign to raise fees at any cost?
This deal will most likely add more M&A to this space. Fidelity will almost assuredly merge with State Street or some one else to gain assets. So we will have 2 assets managers in the US who will control half of all assets under management, which is always good for Wall Street, but bad for individual investors.
One more example of where things are headed.
Where is the government is all of this? These companies are taking advantage of the government/agencies hands being being full. Already the fees are out of control.
ReplyDeleteYou know your projects stand out of the herd. There is something special about them Microleaves. It seems to me all of them are really brilliant!
ReplyDelete