BlackRock and the Federal Deposit Insurance Corp. (FDIC) are in negotiations over new oversight rules that require asset managers to have a passive role in the banks they invest in. The FDIC is demanding that BlackRock sign a passivity agreement, but the company has resisted, arguing that it could disrupt index funds and make it more costly for banks to raise capital. The disagreement has led to the departure of key members of the board who had argued for increased oversight of asset managers. The regulatory standoff comes at a time of significant shifts in the financial sector, including increased integration of digital assets. The outcome of the negotiations between BlackRock and the FDIC could affect future regulation of both traditional banking and emerging finance.



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