BlackRock Profits At Bear's Expense

BlackRock Profits At Bear's Expense

BlackRock boss Larry Fink may want to thank the Federal Reserve for handing him a fistful of new business yesterday.

As part of JPMorgan's sweetened takeover bid for beleaguered brokerage giant Bear Stearns, the Fed tapped BlackRock to manage the $30 billion portfolio of mostly battered mortgage securities that it is taking on to fund the deal.

That should give BlackRock at least $54 million each year that it manages the assets, based on the average fee the firm typically charges for managing fixed-income portfolios. Analysts believe the firm's fees could be much higher for this assignment, given the complexity of the portfolio.

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