Federal Backing for GOP in Antitrust Clash with Asset Giants

U.S. federal antitrust agencies have thrown their support behind Republican states accusing asset management giants BlackRock, Vanguard, and State Street of conspiring to limit coal output amid climate activism. The Department of Justice and Federal Trade Commission filed a statement in a Texas court to oppose the asset managers' efforts to dismiss the case.

The agencies argued that the firms' conduct, which allegedly sought to reduce market competition, does not qualify for exemptions usually afforded to passive investors. BlackRock, State Street, and Vanguard maintain their focus is on long-term investment interests and have dismissed the allegations as unfounded.

This escalating legal dispute underscores broader political tensions, with conservative Republicans challenging the asset managers' environmental and social governance policies as detrimental to maximizing customer returns. The case is scheduled for dismissal hearing later this year, spotlighting the intense focus on climate-related financial activism.

(With inputs from agencies.)