BlackRock Guy Who Brought Coworkers To Tears Feels Right At Home In Trump Treasury

Snowflakes need not apply.
Get ready for some waterworks here.

Get ready for some waterworks here.

How do you make it into the Trump administration when, despite your millionaire bona fides, you gave six figures to Hillary Clinton's presidential effort and previously positioned yourself for a spot in a Democratic White House? If you're Craig Phillips, previously of BlackRock and now heading up financial regulatory reform in Steve Mnuchin's Treasury Department, a reputation of making your snowflake colleagues cry evidently doesn't hurt:

Mr. Phillips’ blunt criticism was often perceived as bullying that sometimes brought his staff to tears, [former colleagues] said. One 2016 incident that former colleagues said was representative of his behavior involved a financial-data specialist making a presentation to a group of about 200 BlackRock employees around the world. Mr. Phillips interrupted the man and launched an expletive-filled rant, people who witnessed the event said.

Whether this particular alleged outburst was justified we can't know, suffice to say that the BlackRock employees interviewed by the Wall Street Journal painted a portrait of “both a brilliant financier and a volatile boss prone to dressing down subordinates with expletive-laced tongue-lashings.” So whatever Phillips might be lacking in ideological purity – he's certainly no Ayn Rand – he makes up for it in pure alpha-male brio.

We look forward to his eventual meeting with Elizabeth Warren.

Meet Craig Phillips, the Man in Charge of Trump’s Review of Wall Street Rules [WSJ]


At Some Point In The Future, BlackRock Might Sue Over Libor Manipulation

Or it might not. No one can say at this time. Charlie Gasparino reports: BlackRock has $240 billion in money market assets, much of which is priced off of Libor. Thus even artificially depressing Libor a bit could mean that the firm’s customers missed out on billions upon billions in investment returns. A BlackRock spokeswoman told FOX Business: “We are closely following the investigations as well as related litigation to assess the full implications and possible impact these events may have had on our clients and the cash markets. The implications of the various investigations and litigation are complex and it will be some time before greater clarity emerges.” Indeed, people inside BlackRock say assessing damages won’t be easy. First it’s unclear just how much the manipulation cost fund investors since the evidence so far shows that banks like Barclays only depressed their Libor submissions during certain periods of time, particularly during the financial crisis, when they didn’t want to alert investors that they were being charged higher interest rates to borrow money. BlackRock Mulls Legal Action Amid Libor Scandal [FBN]