BlackRock (NYSE:BLK) the worlds largest asset manager has agreed to a $400 K speeding ticket and to stop surveying analysts about earnings expectations.
BlackRock and the New York Attorney General Eric T Schneiderman have reached an agreement late Wednesday. The $400K covers the costs of the investigation. The Attorney General claims that such an efficient survey gave BlackRock an undue advantage in anticipating buy recommendations by top analysts.
So instead of a formal documented survey all that needs to be done is just stay in contact with the analyst; do the drinks after work thing and no one will be the wiser.
If anything the New York AG just saved BlackRock the cost of doing the survey. BlackRock is huge. It’s phone calls will be returned quickly.
Regulatory Hypocrisy. Nothing achieved except a voter friendly scalp that means nothing in the end.
George Gutowski writes from a caveat emptor perspective.