BlackRock (BLK) was given until Jan. 10 to accept a deal allowing the Federal Deposit Insurance Corporation to increase its scrutiny of the asset manager's investments in FDIC-regulated banks, Reuters reported, citing a person familiar with the matter.
The regulator is looking for asset managers to adopt "passivity agreements," which increase its ability to monitor compliance with pledges not to influence the business decisions of FDIC-regulated banks they invest in, the report said.
BlackRock received a proposal from the FDIC that is worded "substantively the same" as a deal with investment manager Vanguard, the report said.
Neither BlackRock nor the FDIC immediately responded to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.