LARRY FINK’S $12 TRILLION SHADOW
SUZANNA ANDREWS, 02 March 2010
Though few Americans know his name, Larry Fink may be the most powerful man in the post-bailout economy. His giant BlackRock money-management firm controls or monitors more than $12 trillion worldwide—including the balance sheets of Fannie Mae and Freddie Mac, and the toxic A.I.G. and Bear Stearns assets taken over by the U.S. government last year. How did Fink rebound from a humiliating failure to become the financial fulcrum of Washington and Wall Street? Through a series of interviews, the author probes his role in the crisis, his unique risk-assessment system, and the growing concern he inspires.
Considering the enormous power he is believed to wield, it’s remarkable how few people have heard of Larry Fink. In political and business circles—among the men who travel the now well-worn corridor between Washington and Wall Street—Fink, the chairman and C.E.O. of BlackRock, the giant asset-management firm, is described as possibly the most important man in finance today. But mention his name to most people and they draw a blank. Despite his considerable wealth, he is virtually unknown on the society circuit in Manhattan, where he has an apartment on the Upper East Side, or in Aspen, where he also has a home. In North Salem, the affluent enclave north of New York City where he and Lori, his wife of 35 years, have a 26-acre farm, he is perhaps slightly better known, if only because a number of Wall Street bankers have estates there. But still—just a few months ago—when one of his neighbors, a prominent New York agent, furious that a popular horse path through the Fink estate had been blocked off, was told who owned the property, her response was: “Who is Larry Fink?”
