MONKEY SEE, MONKEY DO
Fortune magazine has an article worth reading on Blackrock, a major asset management institution that much of Wall Street is retaining to analyze their sub-prime exposures. Here's a taste:
The reason so many CEOs have kept him on speed dial in recent months is simple: No other firm is trusted to pick through the exotic securities infecting banks' balance sheets and place an accurate value on them..."
"At a time when the credit-rating agencies like Moody's and Standard & Poor's have lost face, BlackRock's valuations have become a kind of de facto Good Housekeeping seal of approval that buyers and sellers of distressed assets trust.
While much of this is good news for Blackrock, it's not been all smooth-sailing at the firm, as Fortune observers:
My favorite line in the piece is by Blackrock CEO Larry Fink, who was in transit from the U.S. to Asia on September 13th, disconnecting him from critical market events. As Fortune went on to describe it:
So has ours, and the Fortune piece is a good way to survey some of the aftermath, and get a glimpse at how the globally shaky house of cards really got built.