Laurence D. Fink
Encyclopedia
Laurence D. "Larry" Fink (born 1952) is the chairman and chief executive officer of BlackRock
, an American multinational
investment management
corporation. BlackRock is the largest money-management firm in the world.
in political science from the University of California, Los Angeles
(UCLA) in 1974. He then received an MBA at the UCLA Anderson School of Management (then known as the UCLA Graduate School of Management) in 1976.
, 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
. 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.
Fink added as much as $1 billion to First Boston’s bottom line, and was successful at the bank up until 1986, when his department lost $100 million due to his incorrect prediction about where interest rates were headed. Fink learned from this experience to more fully understand the risks, and he decided to start a company that would not merely invest clients' money, but would provide sophisticated risk management as well.
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 a more independent corporate entity 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.
BlackRock went public in 1999. By 2003, the American financial establishment relied on Larry Fink to such an extent that he 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.
Despite great success, Fink has also had some setbacks at BlackRock, the greatest one being the ill-fated purchase of a Manhattan housing complex for $5.4 billion in 2006. It was the largest residential-real-estate deal in U.S. history up until that time, and the housing complex ended up in default. BlackRock clients lost their money, including the California Pension and Retirement System
which lost about $500 million. Also in 2006, Fink made perhaps his best business decision, deciding to merge with Merrill Lynch
Investment Managers, which doubled BlackRock’s asset management portfolio.
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, Fink's longstanding relationships with senior government officials have led to questions about potential conflict of interest regarding government contracts awarded without competitive bidding.
In December of 2010, 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. Despite his great influence, he is not widely known for that influence, and instead is more familiar from his regular appearances on CNBC
. BlackRock paid Fink $23.6 million in 2010.
Alongside his career at BlackRock, 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.
.
Larry Fink flies on commercial airlines (unlike most other Fortune-100
CEOs). Likewise, according to an interviewer, he takes the train rather than a private jet when he spends time at his 26-acre country estate in North Salem, New York
, about 50 miles from his NYC office.
Fink has been married to his wife Lori since the mid-1970s. Aside from homes in Manhattan and North Salem, they also have a home in Aspen, Colorado
. He enjoys fly fishing
and skiing, and has a collection of American folk art
. The Finks have three children and they are also grandparents. He is a lifelong Democrat
.
BlackRock
BlackRock, Inc. is an American multinational investment management corporation and the world's largest asset manager. BlackRock is headquartered in Manhattan, New York City, New York, United States and is the leading provider of investment, advisory, and risk management solutions...
, an American multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
investment management
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
corporation. BlackRock is the largest money-management firm in the world.
Early life and education
Larry Fink grew up in Van Nuys, California, where his mother was an English professor, and his father owned a shoe store. He earned a BABachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
in political science from the University of California, Los Angeles
University of California, Los Angeles
The University of California, Los Angeles is a public research university located in the Westwood neighborhood of Los Angeles, California, USA. It was founded in 1919 as the "Southern Branch" of the University of California and is the second oldest of the ten campuses...
(UCLA) in 1974. He then received an MBA at the UCLA Anderson School of Management (then known as the UCLA Graduate School of Management) in 1976.
Career
Fink started his career in 1976 at First BostonFirst Boston
First Boston Corporation was a New York-based, bulge bracket, investment bank, founded in 1932 and acquired by Credit Suisse in 1990. Together with its sister investment banks, it was referred to as CS First Boston after 1993 and part of Credit Suisse First Boston after 1996, the First Boston part...
, 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
Mortgage-backed security
A mortgage-backed security is an asset-backed security that represents a claim on the cash flows from mortgage loans through a process known as securitization.-Securitization:...
market in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. At First Boston, Fink was a member of the Management Committee, a Managing Director
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
, 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.
Fink added as much as $1 billion to First Boston’s bottom line, and was successful at the bank up until 1986, when his department lost $100 million due to his incorrect prediction about where interest rates were headed. Fink learned from this experience to more fully understand the risks, and he decided to start a company that would not merely invest clients' money, but would provide sophisticated risk management as well.
CEO of BlackRock
In 1988, Fink co-founded BlackRockBlackRock
BlackRock, Inc. is an American multinational investment management corporation and the world's largest asset manager. BlackRock is headquartered in Manhattan, New York City, New York, United States and is the leading provider of investment, advisory, and risk management solutions...
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 a more independent corporate entity in 1998. His other positions at the company have included Chairman of the Board
Chairman of the Board
The Chairman of the Board is a seat of office in an organization, especially of corporations.Chairman of the Board may also refer to:*Chairman of the Board , a 1998 film*Chairmen of the Board , a 1970s American soul music group...
, Chairman of the Executive and Leadership Committees, Chair of Corporate Council, and Co-Chair of the Global Client committee.
BlackRock went public in 1999. By 2003, the American financial establishment relied on Larry Fink to such an extent that he helped to negotiate the resignation of the CEO of the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
, Richard Grasso
Richard Grasso
Richard A. "Dick" Grasso was chairman and chief executive of the New York Stock Exchange from 1995 to 2003, the culmination of a career that began in 1968 when Grasso was hired by the Exchange as a floor clerk...
, who was being widely criticized for his $190 million pay package.
Despite great success, Fink has also had some setbacks at BlackRock, the greatest one being the ill-fated purchase of a Manhattan housing complex for $5.4 billion in 2006. It was the largest residential-real-estate deal in U.S. history up until that time, and the housing complex ended up in default. BlackRock clients lost their money, including the California Pension and Retirement System
CalPERS
The California Public Employees' Retirement System or CalPERS is an agency in the California executive branch that "manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families"...
which lost about $500 million. Also in 2006, Fink made perhaps his best business decision, deciding to merge with Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
Investment Managers, which doubled BlackRock’s asset management portfolio.
The U.S. government contracted with BlackRock to help clean up after the financial meltdown of 2008
Late-2000s financial crisis
The late-2000s financial crisis is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s...
. Although BlackRock is widely believed to have been the best choice for the cleanup job, Fink's longstanding relationships with senior government officials have led to questions about potential conflict of interest regarding government contracts awarded without competitive bidding.
In December of 2010, 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. Despite his great influence, he is not widely known for that influence, and instead is more familiar from his regular appearances on CNBC
CNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
. BlackRock paid Fink $23.6 million in 2010.
Alongside his career at BlackRock, Fink serves on the board of trustees of New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...
, where he holds various chairmanships including chair of the Financial Affairs Committee. He also co-chairs the NYU Langone Medical Center
NYU Langone Medical Center
NYU Langone Medical Center is an academic medical center in New York City affiliated with New York University. It was named to the Honor Roll of U.S. News "Best Hospitals" in the nation for 2009-2010. The Medical Center comprises NYU School of Medicine and three hospitals: Tisch Hospital, the Rusk...
board of trustees, and is a trustee of the Boys' Club of New York.
Personal life
Fink's eldest son, Joshua, is chief executive officer of Enso Capital. Joshua's father owns a stake in that hedge fundHedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
.
Larry Fink flies on commercial airlines (unlike most other Fortune-100
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
CEOs). Likewise, according to an interviewer, he takes the train rather than a private jet when he spends time at his 26-acre country estate in North Salem, New York
North Salem, New York
North Salem is a town in the northeast part of Westchester County, New York, United States. The county ranks second for wealthiest counties in New York State and the seventh wealthiest county nationally...
, about 50 miles from his NYC office.
Fink has been married to his wife Lori since the mid-1970s. Aside from homes in Manhattan and North Salem, they also have a home in Aspen, Colorado
Aspen, Colorado
The City of Aspen is a Home Rule Municipality that is the county seat and the most populous city of Pitkin County, Colorado, United States. The United States Census Bureau estimates that the city population was 5,804 in 2005...
. He enjoys fly fishing
Fly fishing
Fly fishing is an angling method in which an artificial 'fly' is used to catch fish. The fly is cast using a fly rod, reel, and specialized weighted line. Casting a nearly weightless fly or 'lure' requires casting techniques significantly different from other forms of casting...
and skiing, and has a collection of American folk art
Folk art
Folk art encompasses art produced from an indigenous culture or by peasants or other laboring tradespeople. In contrast to fine art, folk art is primarily utilitarian and decorative rather than purely aesthetic....
. The Finks have three children and they are also grandparents. He is a lifelong Democrat
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
.