By Jennifer A. Dlouhy
Sullivan previously pressed the issue during an Oval Office event with Trump. And Cramer threatened in a tweet to press for “appropriate action” as a member of the Senate’s banking committee.
The energy sector is critical to the nation’s economic recovery and national security, but banks are unfairly picking winners and losers “in order to placate the environmental fringe,” the lawmakers told Trump. “Scoring cheap political points at the expense of American energy workers is an affront to our economic success and must be confronted.”
The lawmakers singled out BlackRock because of its coal plans and its central role in distributing credit facilities under the coronavirus stimulus law. “Its hostility toward the American energy sector is unacceptable and should be closely scrutinized,” they say.
A representative of BlackRock declined to comment. But in a January letter to clients, BlackRock emphasized its investments will always represent the preferences, timelines and objectives of its clients, including those that may prefer “traditional strategies.” BlackRock also stressed the portfolios it manages will continue to hold investments tied to hydrocarbons amid a global transition away from fossil fuels that will take decades.
The Federal Reserve Bank of New York already said in a “frequently asked questions” document that the central bank will provide investment guidelines for coronavirus-spurred corporate credit facilities, rather than allowing investment managers to apply their own, internal guidelines.
The lawmakers put other lenders on notice, distributing copies of their letter to chief executives of Citigroup Inc., Goldman Sachs Group Inc., JP Morgan Chase & Co., Wells Fargo & Co., and Bank of America Corp.