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| The Fed Asks for BlackRock’s Help in an Echo of 2008 | The Fed Asks for BlackRock’s Help in an Echo of 2008 |
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| The Federal Reserve has turned again to BlackRock. | The Federal Reserve has turned again to BlackRock. |
| The nation’s central bank said it tapped BlackRock, the world’s largest asset manager, to help oversee the Fed’s efforts to stabilize the bond market amid the economic turmoil caused by the coronavirus pandemic. | The nation’s central bank said it tapped BlackRock, the world’s largest asset manager, to help oversee the Fed’s efforts to stabilize the bond market amid the economic turmoil caused by the coronavirus pandemic. |
| A BlackRock subsidiary will advise the Fed on the purchase of billions of dollars in commercial mortgage-backed securities and investment-grade corporate bonds — a decision that echoed a move from the 2008 financial crisis. | A BlackRock subsidiary will advise the Fed on the purchase of billions of dollars in commercial mortgage-backed securities and investment-grade corporate bonds — a decision that echoed a move from the 2008 financial crisis. |
| The details of the arrangement, including how much BlackRock will be paid for its services, have not yet been released. But it promises to be a lucrative venture for the firm, which could also be in a position to profit from the advice it gives. | The details of the arrangement, including how much BlackRock will be paid for its services, have not yet been released. But it promises to be a lucrative venture for the firm, which could also be in a position to profit from the advice it gives. |
| Under one of the programs that BlackRock will help lead, the Fed can buy exchange-traded funds that hold stakes in investment-grade bonds, a type of investment that BlackRock sells. | Under one of the programs that BlackRock will help lead, the Fed can buy exchange-traded funds that hold stakes in investment-grade bonds, a type of investment that BlackRock sells. |
| BlackRock found itself in a similar situation during the last crisis. After Bear Stearns and American International Group collapsed, the New York Federal Reserve retained BlackRock to help oversee billions of dollars in ailing assets that had belonged to them. The firm helped price and sell those assets for the government at the same time it was helping private clients buy similar assets. | BlackRock found itself in a similar situation during the last crisis. After Bear Stearns and American International Group collapsed, the New York Federal Reserve retained BlackRock to help oversee billions of dollars in ailing assets that had belonged to them. The firm helped price and sell those assets for the government at the same time it was helping private clients buy similar assets. |
| At the time, that arrangement prompted criticism from lawmakers and others who worried about coziness between Wall Street and Washington, as well as the potential for conflicts of interest. | At the time, that arrangement prompted criticism from lawmakers and others who worried about coziness between Wall Street and Washington, as well as the potential for conflicts of interest. |
| “The key here is for the Fed to avoid the backlash like last time,” said Dennis Kelleher, president of Better Markets, a nonprofit group that supports stringent financial regulation. “The Fed needs to guarantee there is full transparency and oversight of BlackRock.” | “The key here is for the Fed to avoid the backlash like last time,” said Dennis Kelleher, president of Better Markets, a nonprofit group that supports stringent financial regulation. “The Fed needs to guarantee there is full transparency and oversight of BlackRock.” |
| BlackRock’s dominant position in the stock and bond markets — and, with it, its influence over Wall Street — has only grown in the past decade. The firm now manages nearly $7 trillion in assets for big private clients, including pension funds, hedge funds and sovereign wealth funds. It managed about $1.3 trillion at the time of the last crisis. | BlackRock’s dominant position in the stock and bond markets — and, with it, its influence over Wall Street — has only grown in the past decade. The firm now manages nearly $7 trillion in assets for big private clients, including pension funds, hedge funds and sovereign wealth funds. It managed about $1.3 trillion at the time of the last crisis. |
| The Fed has not yet posted a copy of the contract it signed with BlackRock, though it plans to disclose more details. The central bank was slow to disclose the specific terms of its agreement with BlackRock during the last crisis, and even today the full details of what the firm earned have not been disclosed. | The Fed has not yet posted a copy of the contract it signed with BlackRock, though it plans to disclose more details. The central bank was slow to disclose the specific terms of its agreement with BlackRock during the last crisis, and even today the full details of what the firm earned have not been disclosed. |
| BlackRock’s advisory business is separate from its asset management business, which generates most of the firm’s revenue. Besides working with the Fed during the 2008 crisis, the advisory division has done work for the British Treasury, the Swiss National Bank, the European Central Bank and the government of Greece. | BlackRock’s advisory business is separate from its asset management business, which generates most of the firm’s revenue. Besides working with the Fed during the 2008 crisis, the advisory division has done work for the British Treasury, the Swiss National Bank, the European Central Bank and the government of Greece. |
| “BlackRock Financial Markets Advisory is honored to have been selected to assist the Federal Reserve Bank of New York during this extraordinary time,” the New York firm said in a statement. It said it “will not engage in discussions with market participants and issuers” until more specific details were put out about the programs. | “BlackRock Financial Markets Advisory is honored to have been selected to assist the Federal Reserve Bank of New York during this extraordinary time,” the New York firm said in a statement. It said it “will not engage in discussions with market participants and issuers” until more specific details were put out about the programs. |
| The New York Fed said in a statement that it had selected BlackRock on a “short-term basis” because of its expertise in the market for commercial mortgage-backed securities, which are backed by government-sponsored mortgage finance firms — Fannie Mae, Freddie Mac and Ginnie Mae. | The New York Fed said in a statement that it had selected BlackRock on a “short-term basis” because of its expertise in the market for commercial mortgage-backed securities, which are backed by government-sponsored mortgage finance firms — Fannie Mae, Freddie Mac and Ginnie Mae. |
| BlackRock certainly has expertise in that area: Laurence D. Fink, its chief executive, was one of the pioneers in the trading of mortgage-backed securities on Wall Street. | BlackRock certainly has expertise in that area: Laurence D. Fink, its chief executive, was one of the pioneers in the trading of mortgage-backed securities on Wall Street. |
| Updated June 22, 2020 | Updated June 22, 2020 |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| The Fed’s programs to stabilize the markets will also permit it to buy some of the kinds of E.T.F.s that BlackRock sells. | |
| Todd Rosenbluth, head of E.T.F. and mutual fund research for CFRA, a research firm, said BlackRock dominated the market for the kinds of bond E.T.F.s the Fed said it would buy. | Todd Rosenbluth, head of E.T.F. and mutual fund research for CFRA, a research firm, said BlackRock dominated the market for the kinds of bond E.T.F.s the Fed said it would buy. |
| “The firm’s flagship corporate bond fund, LQD, is a likely beneficiary of the Fed’s planned efforts to stabilize the bond market,” he said. “BlackRock needs to provide transparency in its due diligence process to alleviate concerns that it is choosing to invest in LQD because they are the asset manager running the Fed’s program.” | “The firm’s flagship corporate bond fund, LQD, is a likely beneficiary of the Fed’s planned efforts to stabilize the bond market,” he said. “BlackRock needs to provide transparency in its due diligence process to alleviate concerns that it is choosing to invest in LQD because they are the asset manager running the Fed’s program.” |
| Vanguard and State Street have E.T.F.s that also could fit the Fed’s buying criteria, Mr. Rosenbluth said. | Vanguard and State Street have E.T.F.s that also could fit the Fed’s buying criteria, Mr. Rosenbluth said. |
| Mr. Kelleher said conflict-of-interest measures would be essential for the Fed’s credibility as BlackRock helped the central bank see the economy through another crisis. | Mr. Kelleher said conflict-of-interest measures would be essential for the Fed’s credibility as BlackRock helped the central bank see the economy through another crisis. |
| “It needs to make sure the public understands what it is doing,” he said. | “It needs to make sure the public understands what it is doing,” he said. |
| Jeanna Smialek contributed reporting. | Jeanna Smialek contributed reporting. |