Back on topic. State Street and…Through a web of entities,...

Back on topic. State Street and…

Through a web of entities, global asset managers have systematically created an additional layer of financial custodianship. At the top of this tree is State Street Corporation, Vanguard Group and BlackRock with a combined total of in excess $55 trillion currently under custody and administration. Wow ! Not bad when we consider global sovereign wealth funds under administration total a mere $15 trillion.

In the wake of the financial crisis of 2007 and 2008, a 'too-big-to-fail' law was passed by US Congress to provide additional oversight powers to the Federal Reserve to ensure banks of more than (then) $50 billion in assets would continue into the future to be able to meet their obligations. This did not include State Street, Vanguard and BlackRock and similar others like Dodge & Cox though. When questioned about the expanding reach of global asset managers US Treasury Secretary Janet Yellen once replied words to effect that such an oversight was not appropriate.

With controlling stakes in multiple same sector competing businesses including ownership of our water supply, transport and energy infrastructure, airports, port handling facilities and more Vanguard Group has a 12.3% ownership stake in State Street Corporation, BlackRock 8.26% and Dodge & Cox 6.70%. But what else, who else? Who is actually who in the zoo ?

A bit of weekend conspiracy to keep the brain ticking over!