Some economic experts warn: With Friedrich Merz, the CDU-Chairman of the international financial industry could win in Germany as much influence as never before. But who exactly is his employer, BlackRock?
You throw deep shadows over Friedrich Merz’ candidacy for the CDU presidency: His ties to the investment industry. In the criticism of his Job as Chairman of the Supervisory Board at BlackRock, probably the most powerful shadow banking is around the world.
Shadow banking – this term refers to financial companies that operate like banks, but not the state-owned Bank regulated. The influence of these companies is growing worldwide, and is far greater than that of the visible global giants such as Amazon, Facebook and Google (to which BlackRock also holds all bonds). Financial market speculation, are one of the largest shops in the world.
Destabilize the shadow banking to the economy?
Critics of so-called shadow banks say: they destabilize the world economy because they create incentives to focus on risky investments, because they are acting with bad loans, and because they invest on an anonymous, unregulated markets – so-called Dark Pools. In the rise of the shadow banks is seen by some to be one of the main causes of the mortgage crisis of 2007-2008 and the subsequent global economic crisis.
Friedrich Merz is currently the Supervisory Board of a so-called shadow banking
Friedrich Merz was appointed in 2016 to the Chairman of the Supervisory Board of the German branch of BlackRock, the world’s largest asset managers. The company controls about 5.6 trillion euros – nearly twice as much as the annual gross domestic product of Germany.
Two German scientists warn now about to pass, Merz government responsibility. For you Merz’ Connections to the financial industry represent a threat for Germany and the international economy. Political scientist Peter Grottian and financial scientist Werner Rügemer have issued a Dossier to Merz and BlackRock. The title of the paper: “Friedrich Merz: Agent of the super-rich and Powerful”.
Who is BlackRock?
According to the 14-page paper, BlackRock is a global leader to help very rich people to bypass the state and financial regulations. No other company is so many letter box companies such as BlackRock, write Grottian and Rügemer.
Political scientist Peter Grottian said: You must now speak about the impact of BlackRock
Also in “Dark Pool”-the financial markets, the company is at the forefront of the markets in which financial institutions outside of the exchanges, and with just a few regulations with the securities act. In addition, BlackRock in the creation of Quasi-monopolies, to have his fingers in the game – so the company have played in the Acquisition of Monsanto’s pharmaceutical giants Bayer, have a key role.
According to Grottian and Rügemer, BlackRock, through its numerous Investments in the interest, to influence legislation. As an example, they cite, among other things, the fact that BlackRock, in Germany, has hundreds of thousands of apartments in large German cities, and shares of several German apartment companies and, accordingly, has an interest to prevent a gripping of the end of Rent control.
Financial scientist Werner Rügemer warns: BlackRock mixes on the German housing market
Financial market observers see BlackRock is critical. “A company like BlackRock, it has never been,” said recently, a business journalist, Heike Buchter, published in 2015, a book about the company. “No one has a comparable insight into companies, governments, regulators and Central banks such as BlackRock.”
“We are an independent asset Manager”
On demand, a spokesperson from BlackRock refused to comment on the allegations – but referred to a paper by CEO Larry Fink. “We always act in full awareness of the great responsibility we bear. Because we are Trustees of the savings of many millions of people around the world. To do this, workers and employees as well as entrepreneurs and retirees,” it says. “We are not a Bank. We are an independent asset Manager.”
Investigators searched now the Munich-based office
German authorities are currently working against the company due to controversial tax transactions – the so-called Cum-Ex-Deals. The allegations do not fall in the time before Merz’s Supervisory Board mandate, but the seriousness of the business practices of BlackRock – and, thus, Merz’s role as a financial lobbyist in question.
That CDU politicians maintain a close relationship with the economy is actually nothing New – but, according to Rügemer and Grottian the Whole has adopted in the case of Merz on an entirely new scale. “The Power of capital in the case of the CDU governments was not always concealed, more or less, anyway – has not sought representation in the top political top. And now with Merz differently,” Rügemer. “The largest financial companies in the Western world, the German Chairman of the Supervisory Board appointed a top-paid Lobbyist should not only – as previously – in the Federal Chancellery [run], but would now like to CDU Chairman and Chancellor.”