Black Rock and market manipulation part 2

ramsesuchiha (70)in Project HOPE • 2 years ago

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Greetings Project Hope family, we continue with the second part about Black Rock and how through environmentalist measures it has manipulated the market.

U.S. Senator Cotton of the Republican Party has openly attacked Black Rock, accusing them of profiting and manipulating the market and investors through ESG and environmental measures.

The ESG criteria improves the seal of quality and makes it attractive to investors, the problem is that there are companies like Tesla that lost the support of the ESG acronym and others such as oil companies that work with hydrocarbons if they have ESG approval.

The most important company when it comes to rating the ESG of a company is called MSCI and is being accused of not doing a transparent job, MSCI converts its rankings into investments and MSCI's main client is Black Rock, so they use this as an advertisement to sell shares.

The CEO of MSCI is Henry Fernandez and he created this index several decades ago when he noticed that people were concerned about the environmental impact of their investments, but they favor companies that have a relationship with Black Rock and so they exclude Tesla while Chevron has the highest ESG score.

In 2021 MSCI gave Mcdonals a high ESG score to attract investments, based only on a recycling practice that the company applies in France and not globally.

Climate action 100+ is an environmental initiative that led oil companies to lower their production and this influences the price of oil, then Black Rock sells shares of these companies and earns a lot of money.

The SEC started an investigation against Black Rock and Goldman Sachs for misleading marketing for using the acronym ESG and selling the public the idea that some companies collaborate and help the environment when this is not the case.

My personal opinion is that large investment firms do a very good job of making the public believe that a company is attractive to invest in and that also happens in the world of cryptocurrencies so we must be vigilant in our investments.