Laurence D. Fink

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Laurence Fink
Born Laurence Douglas Fink
1952 (age 61–62)
Los Angeles, California, USA
Ethnicity Jewish
Alma mater University of California, Los Angeles
Occupation Chairman and chief executive officer of BlackRock,
Political party
Democratic

Laurence Douglas "Larry" Fink (born 1952)[1][2] is the chairman and chief executive officer of BlackRock, an American multinational investment management corporation.[3] BlackRock is the largest money-management firm in the world by assets under management.[4]

Early life and education[edit]

Fink grew up in a Jewish family[5] in Van Nuys, California, where his mother was an English professor and his father owned a shoe store.[4] He earned a BA in political science from the University of California, Los Angeles (UCLA) in 1974.[2] He then received an MBA at the UCLA Graduate School of Management in 1976.[2][6]

Career[edit]

Fink started his career in 1976 at First Boston, a large New York-based investment bank. Eventually taking charge of First Boston's bond department, Fink was instrumental in the creation and development of the mortgage-backed security market in the United States.[7] At First Boston, Fink was a member of the Management Committee, a Managing Director, and co-head of the Taxable Fixed Income Division; he also started the Financial Futures and Options Department, and headed the Mortgage and Real Estate Products Group.[8]

Fink added as much as $1 billion to First Boston’s bottom line. He was successful at the bank until 1986, when his department lost $100 million due to his incorrect prediction about where interest rates were headed.[4] The experience influenced his decision to start a company that would invest clients' money while also incorporating comprehensive risk management as well.[4]

In 1988 Fink co-founded BlackRock under the corporate umbrella of The Blackstone Group and became a Director and CEO of BlackRock. When BlackRock split from Blackstone in 1994, Fink retained his positions (as Director and CEO), which he continued to hold after BlackRock became more independent in 1998. His other positions at the company have included Chairman of the Board, Chairman of the Executive and Leadership Committees, Chair of Corporate Council, and Co-Chair of the Global Client committee.[4][8]

BlackRock went public in 1999. In 2003 Fink helped to negotiate the resignation of the CEO of the New York Stock Exchange, Richard Grasso, who was being widely criticized for his $190 million pay package.[4]

In 2006 Fink led the merger with Merrill Lynch Investment Managers, which doubled BlackRock’s asset management portfolio.[2] That same year, BlackRock's $5.4 billion purchase of a Manhattan housing complex became the largest residential-real-estate deal in U.S. history. When the project ended in default, BlackRock clients lost their money, including the California Pension and Retirement System, which lost about $500 million.[4]

The U.S. government contracted with BlackRock to help clean up after the financial meltdown of 2008. Although BlackRock is widely believed to have been the best choice for the cleanup job,[9] Fink's longstanding relationships with senior government officials have led to questions about potential conflict of interest regarding government contracts awarded without competitive bidding.[4]

Fink, third from right, receiving a Woodrow Wilson Award in April 2010

In December 2009, BlackRock purchased Barclays Global Investors, at which point the company that Fink co-founded 22 years previously became the largest money-management firm on the planet.[4] Despite his great influence, he is not widely known for that influence, instead from his regular appearances on CNBC.[4] BlackRock paid Fink $23.6 million in 2010.[10]

By 2012 BlackRock had $3.5 trillion under management, with 10,000 professionals in 27 countries.[11]

Community involvement[edit]

Fink serves on the board of trustees of New York University, where he holds various chairmanships including chair of the Financial Affairs Committee. He also co-chairs the NYU Langone Medical Center board of trustees and is a trustee of the Boys' Club of New York.[7]

Personal life[edit]

Fink has been married to his wife, Lori, since the mid-1970s. The couple own homes in Manhattan, North Salem, New York,[12] and Vail, Colorado. The couple have three children. Joshua, the eldest son, is chief executive officer of Enso Capital, a hedge fund in which Fink owns a stake.[13][14]

Fink is a lifelong Democrat.[4]

References[edit]

  1. ^ "Laurence Fink: Executive Profile & Biography", Businessweek.
  2. ^ a b c d Davidson, Andrew; Goldsmith, Marshall (2009). 1000 CEOs. Penguin. 
  3. ^ "Profile: Laurence D. Fink". Forbes.com. Forbes.com LLC. 2010. Retrieved 26 January 2010. 
  4. ^ a b c d e f g h i j k Suzanna Andrews: Larry Fink’s $12 Trillion Shadow, Vanity Fair, April 2010
  5. ^ Kaminer, Michael (3 September 2010). "Jews Dominate Vanity Fair 100 Most Influential Moguls List". The Jewish Daily Forward (Israel). Retrieved September 3, 2010. 
  6. ^ "CEO Compensation: #55 Laurence D Fink". Forbes.com. Forbes.com LLC. April 22, 2009. Retrieved 26 January 2010. 
  7. ^ a b "Profile: Laurence D. Fink (MBA '76)". Fink Center for Finance & Investments. Los Angeles: UCLA. 2010. Retrieved 26 January 2010. 
  8. ^ a b "Laurence Fink - News, Articles, Biography, Photos - WSJ.com", Wall Street Journal. Retrieved October 14, 2011.
  9. ^ Andrews, Suzanna. Larry Fink’s $12 Trillion Shadow, Vanity Fair, April 2010: "There is little doubt among the financial establishment in Washington and on Wall Street that BlackRock was the best choice to handle the government’s problems."
  10. ^ "The Wall Street Journal/Hay Group Survey of CEO Compensation". The Wall Street Journal. May 8, 2011. Retrieved October 14, 2011. 
  11. ^ Javetski, Bill (September 2012). "Leading in the 21st century: An interview with Larry Fink". McKinsey & Company. Retrieved 27 January 2014. 
  12. ^ Miles Costello: Business big shot: Larry Fink,The Times, June 8, 2009
  13. ^ "A Second-Generation Fink Rises in Finance". The New York Times Company. 8 September 2008. Retrieved 28 January 2010. 
  14. ^ Whitehouse, Kaja (7 September 2008). "Chip Off The Blackrock". New York Post (New York, New York: NYP Holdings, Inc). Retrieved 28 January 2010.