Blackrock to manage Bear portfolio in order to "maximize recovery value"...

Discussion in 'Wall St. News' started by ASusilovic, Mar 25, 2008.

  1. BOSTON (Reuters) - Lawrence Fink is proving that he really is Wall Street's Mr. Fix-It.

    BlackRock Inc the small bond shop Fink grew into one of America's biggest asset managers, on Monday added another $30 billion to the $1.4 trillion it already manages.

    But this wasn't just any mandate, investors and analysts agreed as New York-based BlackRock's share price notched a 9 percent gain, taking it to $224.53.

    The Federal Reserve Bank of New York had selected BlackRock to help keep America's financial system running smoothly as investment bank Bear Stearns s being rescued from collapse by former rival JPMorgan Chase.

    Now BlackRock Financial Management will manage Bear's $30 billion portfolio "under guidelines established by the New York Fed to minimize disruption to financial markets and maximize recovery value," the central bank said.

    Monday's move by the Federal Reserve established once and for all that "these people really are the go-to guys in a crisis," said Jason McPharlin, a portfolio manager at Northstar Capital Management.

    "Their stock price is climbing not because they got another $30 billion in assets but because of the huge vote of confidence the Fed has bestowed on them," McPharlin added.

    For Lawrence Fink, whose knack for keeping top talent and speaking plainly about all types of topics has long delighted investors, this is only the latest high profile call for help his firm has received since the housing market meltdown began.

  2. Suss----It's okay to short-sell BLK now. :D