BlackRock's Fink: Washington is holding back the economy
BlackRock CEO Larry Fink is in Washington. A lot.
With more than $4.6 trillion in assets under management, BlackRock is the world's largest investment firm, and Fink is running the show. And Washington values what he has to say. But for all his advising, Fink is frustrated with the end result in Washington, as he tells Yahoo Finance Editor-in-Chief Andy Serwer in the accompanying video. “You have the meetings with some of the men and women in Congress,” he says. “They’re supportive of what you say, but then you leave, and you waste more time and you waste more time and nothing has happened.”
Washington, Fink says, is not focusing on “long-term strategy,” something he’s criticized U.S. CEOs for as well. Fink, who says “historically” he’s a democrat, says America—and Americans—desperately need less bickering and more forward-thinking in Congress. And we’re not getting it. “We live in world today where long-term is forgotten…When have you seen a comprehensive bill to help immigration or tax reform or with infrastructure?”
Finks says if Washington got those jobs done, he believes the economy would "grow 1 to 1.5% more than it is today." Specifically, he points to better job creation with infrastructure legislation.
Fink and BlackRock advised both the Federal Reserve and the Treasury Department during the financial crisis back in 2008. Since then, Fink has become somewhat of a go-to guy for politicians and world leaders on all things finance and Wall Street. That includes the Obama administration.
Watch Andy Serwer's full interview with BlackRock CEO Larry Fink
As for the 2016 presidential election, Fink says the U.S. needs a candidate that can bring both parties together and reach middle-of-the-road Americans. "Most Americans truly are in the middle. And yet we have a process called the primary process which is really about the extremes," he says.
So what does Fink think about the current field of candidates for the 2016 election? He says he hasn’t made up his mind. And he's not alone on Wall Street.
As the lone Democrat aiming for 2016, Hillary Clinton, certainly has ties to Wall Street. Five of the ten largest donors to Hillary Clinton in her 2001 – 2009 career in the Senate were Wall Street banks including Citigroup, Goldman Sachs, J.P. Morgan Chase and Morgan Stanley.
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On the more crowded Republican side, there’s not a lot Wall Street money likes so far. And that may be because Jeb Bush is still on the sidelines. The former Florida governor has friends on Wall Street. Most recently, he was a paid special advisor to Barclays until he resigned in December to explore a presidential run. His stance on issues like immigration reform and education standards are centrist and widely viewed as more business-friendly.
And, yes, Fink has already met with him.
"There are some very fascinating potential candidates," Fink says. "And I personally believe that the candidate who is at the center at the time of the election next 2016 will most likely be the candidate who wins."
Fink may have his pulse on Washington, but don't expect him to head to Washington full-time. "I’m not on the stump," he says. "I’m just doing my job, representing my clients."
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