{"id":2070118,"date":"2023-10-17T11:53:04","date_gmt":"2023-10-17T15:53:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oklahoma-officials-question-why-blackrock-is-handling-state-retirement-funds-when-its-on-restricted-list\/"},"modified":"2023-10-17T11:57:48","modified_gmt":"2023-10-17T15:57:48","slug":"oklahoma-officials-question-why-blackrock-is-handling-state-retirement-funds-when-its-on-restricted-list","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oklahoma-officials-question-why-blackrock-is-handling-state-retirement-funds-when-its-on-restricted-list\/","title":{"rendered":"Oklahoma officials wonder why BlackRock manages state retirement funds despite being on the restricted list."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Foklahoma-officials-question-why-blackrock-is-handling-state-retirement-funds-when-its-on-restricted-list%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2070118&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<p>Two Oklahoma officials are raising concerns about a state retirement system&#8217;s proposal request (RFP) that may have been tailored to favor an investment firm accused of\u2062 boycotting oil and gas companies.<\/p>\n<p>Oklahoma State \u2063Treasurer\u2063 Todd Russ and \u2064Auditor and Inspector Cindy Byrd are worried that the RFP gave BlackRock \u2064Investments control over 60 percent of the Oklahoma Public Employee Retirement\u2064 System\u2019s (OPERS) assets, which amounts to around $7 billion. This\u200b potential\u2064 violation of state law is alarming.<\/p>\n<p>BlackRock is on the list \u2064of companies\u2063 prohibited by state law from <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oklahoma-officials-question-why-blackrock-is-handling-state-retirement-funds-when-its-on-restricted-list\/\" title=\"Oklahoma officials wonder why BlackRock manages state retirement funds despite being on the restricted list.\">handling state funds \u200cdue<\/a> to its boycott of oil and\u2064 gas companies. Given that the oil industry has been a significant contributor \u200cto Oklahoma&#8217;s\u200b economy for over\u2062 a century, this issue is of great importance.<\/p>\n<\/blockquote>\n<h2>Related Stories<\/h2>\n<ul>\n<li>\n    <a href=\"http:\/\/www.theepochtimes.com\/us\/oklahoma-treasurer-wants-to-know-why-blackrock-handling-state-money-possibly-breaking-state-law-5490500?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>Oklahoma Officials Want to Know if BlackRock Handling State Money Breaks \u200cLaw<\/h3>\n<p>    <\/a><\/p>\n<p class=\"text-comp-caption\">9\/13\/2023<\/p>\n<\/li>\n<li>\n    <a href=\"http:\/\/www.theepochtimes.com\/china\/blackrock-closes-china-equity-fund-after-congressional-probe-5489042?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>BlackRock Closes China Equity Fund After Congressional Scrutiny<\/h3>\n<p>    <\/a><\/p>\n<p class=\"text-comp-caption\">9\/9\/2023<\/p>\n<\/li>\n<\/ul>\n<p>Another\u200d firm, State Street, is also on the prohibited list but \u200dhasn&#8217;t received as much attention as\u200c BlackRock.<\/p>\n<p>This situation\u200d potentially violates the Oklahoma Energy Discrimination Elimination Act of 2022 (EDEA), which prohibits state investments from being handled by \u200bfirms \u2063that boycott oil \u2064and gas producers.<\/p>\n<p>BlackRock representatives have not\u2063 responded\u200b to inquiries from The Epoch Times.<\/p>\n<h2>BlackRock&#8217;s Response<\/h2>\n<p>In a letter to the Oklahoma \u200dTreasurer&#8217;s office, BlackRock Senior Managing Director and Vice \u2063Chairman Mark McCombe emphasized the company&#8217;s commitment to \u200cits clients.<\/p>\n<p>&#8220;BlackRock does not <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/texas-bans-blackrock-and-other-financial-firms-over-esg-energy-crisis\/\" title=\"Texas Bans BlackRock and Other Financial Firms Over ESG Energy Crisis\">boycott energy companies<\/a>,&#8221; Mr. McCombe stated in \u200cthe letter.<\/p>\n<p>The \u2064letter highlighted that BlackRock has significant \u200binvestments in \u200dpublic energy companies worldwide, including $15 billion in Oklahoma, with over 90 percent of that invested in traditional energies like \u2064oil and gas.<\/p>\n<p>There \u2063are indications that\u2063 BlackRock is distancing itself \u2064from ESG (Environmental, \u200dSocial, and Governance) investing. The company has stopped using the term and \u200dhas \u200bsignificantly reduced its support for \u200cESG proposals.<\/p>\n<p>Mr. McCombe \u2064acknowledged the reality\u2063 of ESG policies and the growing demand for\u200c alternatives to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/green-infrastructure-backers-stand-to-profit-from-govt-spending-boost\/\" title=\"\u2018Green Infrastructure\u2019 Backers Stand to Profit From Gov\u2019t Spending Boost\">carbon-based energy<\/a>. However, he emphasized\u200d that BlackRock&#8217;s investment decisions are strictly governed by its\u2063 fiduciary duty to clients.<\/p>\n<p>Despite\u200c concerns about the EDEA law and boycotting oil companies, Mr. Russ and \u200dMs. \u200cByrd believe there are additional issues with the RFP process \u200cat the Oklahoma State Pension Commission.<\/p>\n<p>During the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/reports-migrants-are-being-released-in-states-after-testing-positive-for-covid\/\" title=\"Reports: Migrants Are Being Released In States After Testing Positive For Covid\">commission meeting<\/a>, Mr. Russ and Ms. Byrd questioned the\u200c selection of BlackRock and expressed\u200d their concerns.<\/p>\n<p>Joseph Fox, OPERS executive director, promised to provide an \u2064explanation for\u2062 choosing BlackRock but did not respond to The Epoch Times&#8217; email.<\/p>\n<div class=\"my-5\">\n<h2>OPERS\u2062 Claimed Exemption<\/h2>\n<p>In a memo dated Aug. 23, Mr. \u2062Fox wrote that OPERS claimed an exemption \u200dunder the \u2062EDEA law based on its fiduciary responsibility\u2064 to the \u2063state employees whose funds are being managed.<\/p>\n<\/div>\n<p>Mr. Russ sent a letter outlining his concerns to Mr. Fox and the OPERS \u2063Board of Trustees. \u200cHe suggested that the board should have selected another\u2062 firm or sought more applicants \u200bbased \u2063on these concerns.<\/p>\n<p>Copies of\u200c the\u2064 letter were also sent to key Oklahoma officials, but \u2063they have not provided any comments on the\u200c matter.<\/p>\n<p>Mr. \u2064Russ argued that the RFP\u2062 process appeared to be biased towards BlackRock,\u200d eliminating most of its competition.<\/p>\n<p>Ms. Byrd was \u2064more direct in her assessment, referring to the practice as &#8220;bid rigging&#8221; in the auditing world.<\/p>\n<div class=\"post-figure\" style=\"margin-left:0;margin-right:0;max-width:1200px\">\n<figure style=\"width:640px;margin-left:auto;margin-right:auto\" class=\"alignnone\"><figcaption>(Left) \u2064Oklahoma State Treasurer Todd Russ and (Right) Oklahoma State Auditor and Inspector Cindy\u2062 Byrd during the\u2064 Sept. 12, 2023 Oklahoma State Pension Commission meeting\u200c in Oklahoma City. (Michael Clements\/The Epoch Times)<\/figcaption><\/figure>\n<\/div>\n<p>Mr. Russ also highlighted that the decision to retain BlackRock&#8217;s services violated OPERS&#8217; fiduciary duties due to the\u2064 company&#8217;s commitment to\u2063 ESG principles.<\/p>\n<p>These concerns \u200braise\u200b important questions about the fairness and transparency of the RFP process and the potential \u200cimpact on Oklahoma&#8217;s state funds.<\/p>\n<div class=\"my-5\">\n  <em>Bill Pan contributed to this report.<\/em>\n<\/div>\n<p> <\/p>\n<h2> How does BlackRock&#8217;s response \u200bto concerns about the violation of\u2063 the Oklahoma Energy Discrimination Elimination Act (EDEA) and favoritism in the RFP process affect\u200b the ongoing scrutiny of the\u2063 situation<\/h2>\n<p><span>  Tate Retirement System.\u2063 They contend that \u200bthe RFP may have\u2062 been tailored specifically\u2063 to favor BlackRock Investments, thus \u200cpotentially\u2063 violating state law.<\/p>\n<p>The significance of this \u2063issue cannot be understated, considering the historic\u2064 contribution\u200c of the oil\u2062 industry to \u200cOklahoma&#8217;s economy. With a century-long presence in the\u2064 state,\u2063 the\u200c oil \u2062and \u2064gas companies have been major generators of revenue and\u200b employment. Therefore, any action that undermines\u200d the industry&#8217;s growth \u200band stability is \u2062a matter of great concern.<\/p>\n<p>It is alarming \u200dthat the\u200c RFP\u200c may have granted BlackRock Investments control over 60 percent\u200d of the Oklahoma Public Employee Retirement\u200b System&#8217;s assets,\u2062 which amounts \u2064to approximately $7 billion. This \u2062raises questions about the impartiality and \u2062fairness \u2063of the selection process \u200band whether \u200dit\u200c was influenced by factors other than \u200cthe best interests \u2063of the retirement system and its beneficiaries.<\/p>\n<p>Furthermore, \u200bit is\u2063 worth noting\u2064 that BlackRock is \u2064on the list of companies prohibited by state law from handling state funds due\u2062 to its boycott of oil and\u200b gas companies. State\u200c Treasurer Todd \u2064Russ and \u200cAuditor and Inspector Cindy Byrd are rightly concerned that such a\u200d firm may have gained control\u200b over a significant portion of the retirement system&#8217;s assets, \u2063potentially violating the Oklahoma Energy Discrimination Elimination Act\u2063 of 2022 (EDEA).<\/p>\n<p>State\u200b Street, another firm on the prohibited list, has not received as much \u200battention as BlackRock. However, the focus on BlackRock&#8217;s potential violation of state law highlights the need for a thorough investigation \u200binto this matter.<\/p>\n<p>In response \u200cto \u2062these concerns, BlackRock \u2063Senior Managing Director and Vice Chairman Mark McCombe stated in a letter to the Oklahoma Treasurer&#8217;s office that the company does\u2062 not \u2064boycott energy companies. He emphasized \u2064the significant investments that BlackRock \u200chas\u200d made in \u200dpublic energy companies worldwide, \u2062including $15\u200b billion \u2062in Oklahoma, with the majority \u2063invested in traditional energies like oil and gas.<\/p>\n<p>While there are indications that BlackRock is distancing itself from \u2063Environmental, \u2063Social, and Governance (ESG) investing, Mr. McCombe acknowledged the reality \u2063of\u2062 ESG policies and the demand for alternatives to carbon-based\u2063 energy. However, he stressed that BlackRock&#8217;s investment decisions\u200c are \u2063guided solely by its fiduciary\u200b duty \u2064to its clients.<\/p>\n<p>Despite \u2064BlackRock&#8217;s response,\u2062 concerns about the potential \u2063violation of the\u2062 EDEA law\u200d and the\u2063 favoritism \u2064shown in \u200cthe\u200b RFP\u200b process\u200b persist. State Treasurer Todd Russ and Auditor \u200band Inspector\u200d Cindy\u2063 Byrd believe that there are additional issues with the\u200d RFP \u200bprocess at the Oklahoma State Retirement System.<\/p>\n<p>Given \u2062the magnitude\u200b of the\u200d state retirement system&#8217;s assets and the importance of preserving the\u200c integrity of the selection process, it is imperative that a thorough investigation be conducted to address these \u2064concerns. Any\u200b violation of state \u2064law must be addressed to ensure transparency, fairness, and accountability \u2063in the management of public funds.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two Oklahoma officials, State Treasurer Todd Russ and Auditor and Inspector Cindy Byrd, suspect that the request for proposal (RFP) for a state retirement system was manipulated to benefit BlackRock Investments, which supposedly boycotts oil and gas companies. They are troubled by the fact that BlackRock was given 60% control over Oklahoma&#8217;s investments.<\/p>\n","protected":false},"author":1615,"featured_media":2070119,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2070118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2070118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1615"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2070118"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2070118\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2070119"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2070118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2070118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2070118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}