Protests Target Pimco & BlackRock Over Opposition To Housing Recovery

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Community groups take action at Pimco headquarters in Newport Beach, CA, BlackRock headquarters in New York City, and other major cities, to demand companies “Negotiate, not litigate”

Multiple Locations – On Wednesday, October 30, 2013, homeowners and community supporters in a number of U.S. and Global cities will visit the corporate offices of giant money managers Pimco and BlackRock as part of an escalating campaign by homeowners, community groups and unions who are fighting for local principal reduction programs in Richmond, California and numerous other cities across the country.

Fed up with inaction on troubled loans and BlackRock and Pimco’s opposition to the local principal reduction program called CARES (Community Action to Restore Equity & Stability) protesters will disrupt business at each location until they meet with senior officials about their attempts to intimidate cities considering local principal reduction programs, including the potential use of eminent domain. Both Pimco and BlackRock unsuccessfully sued the city of Richmond over its proposal.

Blackrock and Pimco have been central firms at the heart of the financial crisis—and like other Wall Street entities, BlackRock and Pimco both have been charged with various kinds of wrongdoing in the fallout from the housing crash, including fraud and failing to adequately protect clients. Wednesday’s actions will call on both firms to help homeowners and their own investors by working with cities determined to see troubled underwater loans fixed.

 

WHAT: Protests at Pimco and BlackRock offices in New York, San Francisco and Newport Beach, CA, St. Louis, Seattle and Atlanta

 

WHO: Homeowners, community supporters and union members

 

WHEN:

NEW YORK: Wednesday, Oct. 30, 12:15pm ET                  

SAN FRANCISCO: Wednesday, Oct. 30, 12:00pm PT

NEWPORT BEACH: Wednesday, Oct. 30, 10:30am PT

ST. LOUIS: Wednesday, Oct. 30, 12:00pm CT

SEATTLE: Wednesday, Oct. 30, 2:30pm PT

ATLANTA: Wednesday, Oct. 30, 1:00pm ET

CHARLOTTE: Wednesday, Oct. 30, 11:00am ET

JERSEY CITY: Wednesday, Oct. 30, 4pm ET

 

WHERE:

NEW YORK: BlackRock Headquarters, 55 E 52nd St, New York, NY

SAN FRANCISCO: BlackRock Offices, 405 Howard St, San Francisco, CA

NEWPORT BEACH: Pimco Headquarters, 840 Newport Center Drive, Newport Beach, CA

ST. LOUIS: BlackRock Offices, 1001 Craig Road, Suite 260, 2nd Floor St. Louis, MO

SEATTLE: BlackRock Offices, 601 Union St Suite 5600 Seattle, WA

ATLANTA: BlackRock Offices, 3455 Peachtree Rd, NE, Ste. 750, Atlanta, GA

CHARLOTTE: BlackRock Offices, 227 W. Trade St., Ste. 650, Charlotte, NC

JERSEY CITY: BlackRock Offices, 525 Washington Bl., Ste. 1405, Jersey City, NJ

  • GBR

    The author’s allegation that Pimco has “been charged with various kinds of wrongdoing in the fallout from the housing crash, including fraud and failing to adequately protect clients” lacks any basis in fact and borders on libel. Indeed, no regulator or prosecutor has filed any such action whatsoever against the firm. On the contrary, contesting unlawful municipal cram-downs — such as Richmond’s short-sighted eminent domain gambit — serves to protect the firm’s clients, which inexplicably include some of the unions behind today’s demonstrations. Asset managers’ must uphold their fiduciary duty to clients. Unconstitutional civil forfeiture regimes harm those clients. Thus, the firms would be remiss if they acquiesced to principal reductions that undermined the value of their clients’ holdings.

    • netminnow

      What’s the matter? Aren’t you Blackrock’s toady too?

      • GBR

        Netminnow: Do you have any substantive response, or shall we presume that you resort to name-calling when the facts don’t comport with your blind hatred for the entire industry?

        • netminnow

          The invocation of eminent domain by municipalities has yet to decided on this matter, so it’s not certain that’s it unlawful. To say so is just wishful thinking at this point. I expect those who manage pension funds to think long term, not for immediate gratification, so that would explain the unions calling asset managers to task by demonstrating against foreclosing on the tax-base and largest retirement nest egg they and their neighbors hold. The Supreme Court has already found for municipalities invoking eminent domain to increase or protect the tax-base of their communities, hence it is not a forgone conclusion the gambit will fail. Fiduciary duty does not necessitate exercising the most avaricious outlook, rather it is to foster long-term stewardship of assets. And no worries about firms acquiescing anything. They frequently take what isn’t theirs.

          It is specious to say that only regulators or prosecutors would charge an entity with fraud or wrong doing. There are many filings citing civil torts that do just that. Like the class action lawsuit Pimco settled for $92 Million because they didn’t manipulate the Treasury bond market. I mean they didn’t admit to doing it. I’m sure if you submit your vigorous defense of your employer to them, you can collateralize some brownie points in there. In the meantime, if your firm is not rigorous enough to stand apart as a shining example of how financiers should conduct themselves to the overall benefit of civilization then its proximity to all those who deserve tar and feathers assure further protestations like this comment and those outside Pimco offices.

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