It appears China got its money’s worth by bringing in BlackRock CEO Larry Fink to advise them on market conditions.
Chinese regulators asked Fink, who is the world’s largest asset fund with nearly $4 trillion under management, to speak with them about managing how its stock market volatility.
Not quite sure how many calls it took Fink to convince Fed chair Janet Yellen not to raise rates, because of China’s volatility, but Yellen did cite China’s weakness three times in her remarks after her no rate hike decision.
Fink has long been the go-to guy for Washington’s monetary policy regulators. His firm is the gorilla in most markets and was called on to help with the treasury flash crash earlier this year.
He was also called upon to defend the high-leverage bond ETF market when most market mavens saw cracks in the foundations of most of the funds because of a lack of liquidity.
Fink was called on to debate Carl Icahn at this summer’s Delivering Alpha conference to defend the troubled asset class.
Icahn said to Fink at the time that BlackRock is a part of the problem, calling the asset management outfit “a dangerous company”, before opining that Fink and Janet Yellen are “pushing the damn thing [leveraged ETFs] off a cliff.”
So it makes sense for China to call Fink out of the bullpen to save their markets from another 30 percent downturn if Yellen raised rates and undid China’s devaluation in August.