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It is a dominant player in ETFs ( exchange-traded funds ) and bond markets , making it a key driver of financial market trends . Through its proprietary Aladdin software , BlackRock provides risk management tools that are relied upon by many governments and corporations , giving it access to sensitive economic data .
Influence on policy-making
BlackRock ’ s influence on policy-making is both direct and indirect . Its executives often move from the private sector to key positions in government , a phenomenon known as the “ revolving door ”. Governments draw on BlackRock ’ s expertise in times of crisis , helping to anchor the company in the fabric of public policy .
Influence during the COVID-19 pandemic
During the COVID-19 pandemic , Black- Rock was commissioned by the US Federal Reserve to manage its bond-buying program , an essential part of the government ’ s economic response . This gave BlackRock unrivalled access to government funds and decision-making processes :
Flashmag ! Issue 156 January 2025
The company advised the Federal Reserve on which corporate bonds to buy , including some issued by companies in which Black- Rock itself held significant stakes . Critics argued that this created a conflict of interest , with BlackRock likely to benefit from the policies it helped to shape .
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