Blackrock, Inc. (BLK)

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Icahn Called BlackRock An Extremely Dangerous Company the Fed Has Chosen It to Manage Its Corporate Bond Bailout Programs

Carl Icahn Created a Cartoon About BlackRock and Its Junk Bond ETFs Going Over a Cliff
In 2015, the legendary Wall Street investor, Carl Icahn, called BlackRock an extremely dangerous company. Icahn was specifically talking about BlackRock’s packaging of junk bonds into Exchange Traded Funds (ETFs) and calling them “High Yield,” which the average American doesn’t understand is a junk-rated bond. The ETFs trade during market hours on the New York Stock Exchange, giving them the aura of liquidity when one needs it. Icahn said: “I used to laugh with some of these guys…I used to say, you know, the mafia has a better code of ethics than you guys. You know you’re selling this crap.” Icahn warned that “if and when there’s a real problem in the economy, there’s going to be a rush for the exits like in a movie theatre, and people want to sell those bonds, and think they can sell them, there is no market for them