Antitrust Showdown: Asset Managers vs. Republican States
U.S. federal antitrust authorities consider supporting Republican states' claims against asset managers BlackRock, Vanguard, and State Street for alleged climate activism to cut coal output. The case, presented by Texas and 12 states, accuses these firms of leveraging their investments to discourage competition in the coal sector.
In a significant move, U.S. federal antitrust regulators are likely to back Republican states in their allegations against top asset managers BlackRock, Vanguard, and State Street. The case centers on accusations that these companies have conspired through climate activism to reduce coal production.
Texas and 12 other states claim that BlackRock, Vanguard, and State Street have wielded their considerable influence over U.S. coal companies to stifle competition. The U.S. Department of Justice and Federal Trade Commission are expected to issue a statement of interest in this high-profile case.
This development marks a potential setback for the asset managers, managing trillions in assets, as they face scrutiny from conservative voices particularly from energy-rich states. Despite allegations, the companies maintain there is no concrete evidence supporting these claims, with proceedings scheduled to unfold in June under U.S. District Judge Jeremy Kernodle.
(With inputs from agencies.)
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