From housing crises to war profiteering, BlackRock’s rise to $11.48 trillion in assets comes with a trail of global influence, debt exploitation, and political power plays.
BlackRock, the world’s largest asset manager, reached $11.48 trillion in assets in Q3 2024. This amount rivals the combined GDP of Japan, India, and the UK. The company’s rapid growth over the last two decades has sparked significant criticism. Some critics call BlackRock a “vulture fund” or compare it to the East India Company. In 2022, CEO Larry Fink admitted the company prioritizes profit over social good. BlackRock was founded in the late 1980s by Fink and other finance executives. It first gained traction in the mortgage-backed securities market.
BlackRock’s growth accelerated through its financial services and proprietary software, Aladdin. After going public in 1999 with $165 billion in assets, the company grew rapidly. During the 2007-2008 subprime mortgage crisis, BlackRock’s prominence surged. By 2009, its assets had jumped from $1.31 trillion to $3.35 trillion. By 2020, during the COVID-19 pandemic, BlackRock’s assets swelled to over $8.68 trillion.
Despite its success, BlackRock faces controversy. The company invests heavily in the debt of countries like Ethiopia, Ghana, and Sri Lanka. It refuses debt relief even after repayments, which critics say exploits struggling nations. In the U.S., BlackRock has been blamed for worsening the housing crisis. The firm buys tens of thousands of homes, converts them into rentals, and makes homeownership unaffordable for many.
In 2014, Italy’s market watchdog fined BlackRock for market manipulation involving its UniCredit Bank stake. More recently, accusations claim BlackRock profits from global conflicts. The firm invests heavily in defense contractors like Raytheon and Lockheed Martin. It also plays a role in shaping Ukraine’s post-war reconstruction. In 2023, Fink described Ukraine’s rebuilding as an example of capitalism. BlackRock now oversees a $400 billion investment fund for Ukraine’s reconstruction.
As BlackRock’s power grows, so does its influence over politics and conflicts. From worsening housing crises to profiting in war-torn regions, the company’s profit-driven motives and market dominance face increasing scrutiny.