BlackRock Faces January Deadline for FDIC Oversight Agreement

The FDIC is pressuring BlackRock to adopt stricter compliance measures for its stakes in U.S. banks, following a similar agreement with Vanguard.

The FDIC has given BlackRock until January 10, 2025, to sign a 'passivity agreement' ensuring it remains a passive investor in FDIC-supervised banks.
The proposed agreement mirrors one recently signed by Vanguard, which imposes enhanced oversight and reporting requirements for stakes exceeding 10% in banks.
BlackRock has resisted the FDIC's push for stricter oversight, arguing that it already complies with Federal Reserve rules and that further measures could harm investors and disrupt capital flow.
The FDIC's move reflects growing regulatory scrutiny of major asset managers like BlackRock, Vanguard, and State Street, which collectively control significant stakes in the financial sector.
The outcome of the negotiations could set a precedent for how regulators address the influence of large asset managers in sensitive sectors like banking.