Texas, 18 other states oppose Blackrock's "woke" investment practices on pensioner's funds

By bellecarter // 2022-08-17

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Texas joined 18 others in opposing BlackRock Inc.'s investment practices on pensioner's funds. They accused the multinational investment management corporation of imposing "woke" investment criteria and jeopardizing the retirement of middle-class workers. Their attorneys general (AGs) sent a letter to BlackRock CEO Larry Fink challenging the firm's reliance on environmental, social and governance (ESG) criteria at the expense of investor returns. "Our states will not idly stand for our pensioners' retirements to be sacrificed for BlackRock's climate agenda. The time has come for them to come clean on whether it actually values our states' most valuable stakeholders, our current and future retirees, or risk losses even more significant than those caused by BlackRock's quixotic climate agenda," the letter stated. Texas AG Ken Paxton said in an August 8 news release that ESG climate goals harm Texas' oil and gas economy and state pension fund performance. He added that the firm's actions may have also violated state and federal laws. In a letter sent to several states, BlackRock said that it has joined climate organizations merely for a meeting, focusing solely on the company's fiduciary duty. According to a news release from Arizona AG Mark Brnovich's office, BlackRock's focus goes beyond "dialogue." The company's website's description included ensuring the world's largest greenhouse gas emitters take necessary action on climate change and support the Paris Climate Accords, an international treaty on climate change adopted in 2015. The AG also said anyone who purchases a BlackRock fund is forced to support ESG, whether they like it or not. Furthermore, West Virginia AG Patrick Morrisey accused the company of coercion. "This is an example of a company pushing their climate agenda, using investments to force companies and people to abide by their ideology," Morrisey said in a statement. BlackRock has denied the allegations and claimed that it offers a wide range of products and strategies. Meanwhile, "Woke Inc." author Vivek Ramaswamy told the audience at the Conservative Political Action Conference in Dallas that he launched an Ohio-based financial firm called Strive as an alternative to woke investment firms. He noted that ESG is also called stakeholder capitalism, which produces less profit for its shareholders. What's worse, according to Ramaswamy, is the rise of ESG that "drains the lifeblood" out of democracy. "What this represents is a new vehicle for the party in power to do through the backdoor what the government could not get done through the front door under the Constitution," Ramaswamy said.

Senator Ted Cruz slams BlackRock CEO for abusing the market

Back in May, Texas Senator Ted Cruz denounced Fink for his investment decisions. He further pushed for money managers like him to be barred from voting on behalf of other investors "to advance their woke political interests." "Because that is not capitalism, that is abusing the market," Cruz pointed out in an interview with CNBC's "Squawk Box." Aside from slamming Biden's administration's policies for the surge in gas prices since he assumed office in January 2021, the Republican senator also argued that Fink has stopped focusing on increasing profits for shareholders but instead concentrated on social issues such as climate change to be favorable with the elite liberals. Previously, Fink highlighted climate change as a problem facing corporations in a 2020 letter to CEOs of the companies his firm has invested in. "Climate change has become a defining factor in companies' long-term prospects. I believe we are on the edge of a fundamental reshaping of finance," he wrote. Critics are saying that Fink's move may somehow be insignificant in relation to its $1.7 trillion loss in six months. The efforts to gain the trust of the wealthy ones and deceive the shareholders could possibly relieve the said fall. (Related: BlackRock records whopping $1.7 TRILLION loss in first half of 2022.) BlackRock management was quick to invoke the first-half market carnage when revealing the investment performance early in July. "The year 2022 ranks as the worst start in 50 years for both stocks and bonds," Fink said on his earnings call. BlackRock is reportedly giving up. Toward the end of June, only about a quarter of its assets were actively managed to beat a benchmark, instead of tracking it seamlessly as passive strategies are designed to do. Watch the below video that features Senator Tom Cotton blasting Blackrock on its ESG climate cartel. This video is from the In Search of Truth channel on Brighteon.com.

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Senator Ted Cruz slams BlackRock CEO for abusing the market

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