Index funds want to continue being treated as “passive” investors
They should act like them, then
FEW LEVERS of economic power are as mighty as the ability to determine which firms, industries and individuals have access to capital. Authoritarians wield control of banks to tighten their political grip. John Pierpont Morgan used his influence to dominate the rail and steel industries. Might asset managers such as BlackRock and Vanguard join this formidable club by gaining dangerous levels of control over America’s banks? That is the worry of the Federal Deposit Insurance Corporation (FDIC), a banking regulator.
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This article appeared in the Leaders section of the print edition under the headline “Capital control”
From the November 2nd 2024 edition
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