General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsBlackRock, the world's largest asset manager, just BLOCKED withdrawals.
And at 3pm CST--the market is mostly in the RED.
Global Dissident @GlobalDiss
·
3h
🚨 SOMETHING BIG JUST HAPPENED
BlackRock, the world’s largest asset manager, just BLOCKED withdrawals.
Investors tried to pull $1.2 BILLION from its $26B private credit fund.
BlackRock said NO and capped withdrawals at 5%.
Nearly HALF the investors who wanted out were denied their money.
At the same time, Blackstone faced record withdrawals and had to inject $400M of its own cash.
When the BIGGEST funds on Earth start limiting withdrawals, it is a MAJOR WARNING sign for the entire $1.8 TRILLION private credit market.
Link to tweet
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sarisataka
(22,513 posts)Of a bank locking its doors to prevent a run?
Buckeyeblue
(6,331 posts)Reminds me of 2008.
riversedge
(80,462 posts)
AZ8theist
(7,249 posts)
AllaN01Bear
(29,223 posts)
Joinfortmill
(20,926 posts)D_Master81
(2,488 posts)If we are hoping Trump figures something out during his coveted golf time we are screwed
Scrivener7
(59,295 posts)Nor could any of the clowns he has appointed to figure it out.
Renew Deal
(84,940 posts)Because according to the article below, the 5% limit already existed. It's not new.
Ilikepurple
(586 posts)At least what I find interesting is that investors were looking to pull out about 10%. I don’t know if that’s because they saw opportunity somewhere else or an increased risk in this credit fund. The appearance, or should I say the reality, of illiquidity can start runs on withdrawals across markets. I don’t think there’s reason to panic with this news, but if enough big $ panic or try to make big moves, it could reverberate through other markets.
Renew Deal
(84,940 posts)The part of the tweet that is slightly misleading is that Blackrock “blocked” the withdrawal. The 5% limit already existed. The more significant part as you said is that someone tried the withdrawal.
Ilikepurple
(586 posts)As you had correctly noted. I just wanted to note, albeit hastily and clumsily, that it wasn’t business as usual either.
Happy Hoosier
(9,504 posts)The fund in question is not advertised as liquid. The terms specifically mention that Blackrock can throttle transactions. Investors chasing higher returns in a private equity fund take bigger risks.
The REAL story is that investors are losing faith in private equity. That doesn’t bode well for the economy.
SergeStorms
(20,418 posts)Greedy bastards are on a continuous loop. They're never satisfied. It's always, "more, MORE, MORE!
The S&L debacle, junk bonds, derivatives, tranches, private equity.....they're always looking for ways to game the system. It used to take brains to be successful, now all it takes is unbridled greed and someone willing to invent the newest con-game.
And they can't understand why some people don't trust our monetary system. 
Lucky Luciano
(11,854 posts)More like the fact that private credit is not liquid like stocks or treasuries. Selling the private credit instruments takes time. A bank run is particularly bad as the bank usually only has 10% of deposits on hand and the rest loaned out without the ability at all to call back the loans. Selling a corporate bond or private credit instrument is lot like calling in the loan - it is finding another buyer for the loan. On a mark to market basis, it’s there up to a loss of a few percent, but converting to cash takes time.
LuckyCharms
(22,456 posts)
liberalla
(11,013 posts)
UpInArms
(54,751 posts)Investment management firm BlackRock BLK -7.17% ▼ has imposed limits on withdrawals from one of its flagship private credit funds after several investors rushed to pull money, marking another sign of stress in a sector that had been booming just a year ago. Following the news, BLK stock declined 6% on Friday.
The sell-off spilled into the broader private equity sector, with Blue Owl Capital OWL -5.04% ▼ down 4.1%, KKR KKR -4.46% ▼ off 4%, Carlyle Group CG -5.36% ▼ down 3.7%, Apollo Global Management APO -2.28% ▼ slipping 3.2%, and Ares Management ARES -6.01% ▼ falling 4.6%.
The firm disclosed that its $26 billion HPS Corporate Lending Fund received $1.2 billion in redemption requests in the first quarter, about 9.3% of its net asset value.
Because the fund’s structure allows only 5% of assets to be redeemed in a quarter, BlackRock will pay out $620 million and defer the remaining requests, activating its withdrawal limit mechanism.
More at:
https://www.tipranks.com/news/investor-rush-to-exit-hits-blackrock-blk-as-it-limits-withdrawals-stock-drops-6
The one of interest to me is Blue Owl …
That is definitely troubling
Blue Owl has $48 million exposure to collapsed UK property lender, Bloomberg News reports
March 6 (Reuters) - Alternative asset manager Blue Owl has a 36 million pound ($48 million) exposure to Century Capital Partners Ltd, a London-based property lender that entered administration last month, Bloomberg News reported on Friday.
The U.S. private-credit firm, which manages $307 billion in assets, financed the riskiest slice of loans originated by Century, a bridging lender focused on high-end central London property, the report said, citing people familiar with the matter.
Century entered administration with about 95 million pounds of total debt, days before a larger rival, Market Financial Solutions, fell into a UK form of insolvency, according to the report.
Both companies relied on funding lines from private credit firms and banks to originate short-term property loans for borrowers who often cannot secure traditional bank financing, typically at higher interest rates, Bloomberg News reported, and added that Century had not been accused of fraud by any creditor.
More at link
hatrack
(64,713 posts)
enough
(13,732 posts)SergeStorms
(20,418 posts)Anytime the Carlyle Group has a bad day is a good day for the rest of us.
Renew Deal
(84,940 posts)At least for Blackrock
Celerity
(54,171 posts)BlackRock is the world's largest asset manager, not a bank, managing over $10 trillion in assets for clients rather than holding deposits or lending its own money. As a fiduciary, it invests funds on behalf of clients, avoiding the direct balance sheet risks of traditional banking.
see more at:
How asset managers like BlackRock took over the world
https://blogs.lse.ac.uk/lsereviewofbooks/2025/06/16/how-asset-managers-like-blackrock-took-over-the-world-vulture-capitalism-extract-grace-blakeley/
Celerity
(54,171 posts)
Renew Deal
(84,940 posts)I was being pithy. Maybe I could have said “effectively a bank run.” People panic when they think they can’t get their money.
Celerity
(54,171 posts)lonely bird
(2,883 posts)Especially since “regular” banks are insolvent to start with. They depend heavily on one thing: belief. The public has to believe a bank is solid. Once belief fails danger is beating down the door.
TheRickles
(3,311 posts) 
ananda
(34,883 posts)for its clients.
Renew Deal
(84,940 posts)And some people have a higher appetite for risk
Dr. T
(603 posts)triggered the 2008 Bush recession.
usedtobedemgurl
(2,004 posts)Does this mean regular banks could start doing this to us soon - for example, Wells Fargo or bank of America? Does this mean we may never have access to our money? Please explain it like I am a five year old. BTW, March is TBI awareness month. (Traumatic brain injury)
Celerity
(54,171 posts)
Regulation D used to limit savings account withdrawals to six per month. The Federal Reserve scrapped that rule in April 2020. But many banks pretended nothing changed and still enforce the old six-withdrawal limit — because they can. Here’s what you need to know and how to avoid getting hit with unnecessary fees.
What is Regulation D?
Regulation D was a Federal Reserve rule that required banks to maintain reserves against certain types of deposits and limited “convenient” withdrawals from savings accounts to six per statement cycle. The rule distinguished between two types of accounts:
The six-withdrawal cap applied specifically to “convenient” transactions — things like online transfers, bill pay, automatic payments and debit card purchases. In-person withdrawals and ATM transactions were always unlimited. Why the limit existed: The Federal Reserve used reserve requirements as a tool to control monetary policy. By limiting withdrawals on savings accounts, regulators helped banks maintain predictable cash reserves and drew a clear regulatory line between checking (reservable) and savings (non-reservable) deposits.
The 2020 rule change: What actually happened..................................
snip
Bluejeans
(148 posts)Banks and credit unions with Federal deposit insurance are safe.
If they have “Federal”, “national”, “Fed”, “National Association” or “N.A” in their name they’re probably covered by Federal deposit insurance. Call your bank or credit union to double check.
usedtobedemgurl
(2,004 posts)My recently deceased husband used to help me with a lot of these things, once I had my accident. Now I feel completely unsupported. I appreciate you.
Celerity
(54,171 posts)The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system by: insuring deposits; examining and supervising financial institutions for safety and soundness and consumer protection; making large and complex financial institutions resolvable; and managing the resolution of failed banks.
The FDIC was established under the Banking Act of 1933 in response to numerous bank failures during the Great Depression. The FDIC began insuring banks on January 1, 1934. Today, the basic insurance coverage amount for deposit accounts is $250,000.
The FDIC does not operate on funds appropriated by Congress. Its income is derived from insurance premiums on deposits held by insured banks and savings associations and from interest on the required investment of the premiums in U.S. Government securities. It also has authority to borrow from the Treasury up to $100 billion for insurance purposes.
Management of the FDIC consists of a five-member Board of Directors. The members include a Chairman, Vice Chairman, Appointive Director, the Comptroller of the Currency, and the Director of the Bureau of Consumer Financial Protection. No more than three members of the Board can be from the same political party.
markodochartaigh
(5,409 posts)The Trump Administration is Targeting the FDIC, Putting Americans’ Financial Wellbeing at Risk - Public Citizen https://share.google/Hfi90u5mQN1cLdeLT
k55f5r
(517 posts)Will be there for us under this administration. FEMA, Homeland security, ice, and everything else under the Trump umbrella will do whatever the hell it wants. We do not enter into their equations.
SunSeeker
(58,173 posts)Bank customers' deposits are insured by the FDIC in case of bank collapse.
The rich assholes who invested in Blackrock and other private equity funds are not insured by the federal government for their losses. They could still get bailed out, however, like the government did with so many corporations did in 2008/2009.
The worry is it could trigger a panic and a larger meltdown of our economy.
usedtobedemgurl
(2,004 posts)SergeStorms
(20,418 posts)and hurts tRump, Musk, and every other shady S.O.B. I'm buying the first round at the pub. 
Response to usedtobedemgurl (Reply #9)
dixiegrrrrl This message was self-deleted by its author.
tazcat
(272 posts)the hell I hid it! Don't have much but it's all I have being alone.
usedtobedemgurl
(2,004 posts)Today I withdrew money from the bank because I needed to buy something and knew I emptied my wallet yesterday. Well, when I went to put the money in my wallet, there was a couple of hundred in there. I spent the entire day trying to figure out how it got there. No activity on any of my bank accounts! This is going to sound kooky but I think it is my deceased husband. He has done all kinds of things since he passed. The leaking faucet? Fixed. My dog will bark at nothing in the room. The lights blink. A couple of days ago I wanted the overhead light turned off but I did not want to get up. It turned off by itself. When I got up, I checked and the bulbs were not burned out.
But I get the money thing, although yours and mine are opposites. Did your tastes change at all? Things I used to love to eat I really do not like any more!
Bob_in_VA
(138 posts)Regular banks operate under a different set of regulations then companies like Blackrock. If your money is in a checking account, you have unlimited access to it. Savings accounts appear to have some limit to the number of monthly withdrawals but, unless your savings account has a dollar amount limit on withdrawals (frankly not something I have ever seen. Check with your bank if you have a savings account), it shouldn't be an issue. Blackrock, on the other hand, is an investment company for people that are so rich that they can afford to risk significant amounts of money on what are frequently very risky investments, i.e. the 1%. Probably not either one of us.
markodochartaigh
(5,409 posts)regular parachutes for the most well-connected accredited investors, everyone else goes down with the plane.
markodochartaigh
(5,409 posts)warning of possible problems with the banking system a while ago.
Renew Deal
(84,940 posts)Especially if you consider that Bitcoin is slightly lower and silver is higher than when the video came out. They pointed to those two as a problem for JP Morgan.
Uncle Joe
(64,871 posts)I think if you did, she would probably change the subject to Epstein, and we might make progress on that front.
Thanks for the thread riversedge
rubbersole
(11,157 posts)He'll get right on it. Well, as soon as the plane lands and the opening act for the Lee Greenwood concert scheduled for the Bosie High School gymnasium is over.
SergeStorms
(20,418 posts)lining up government funded flights to see his "girlfriend." Then he'll have to find someone to inflate her. 😉
BaronChocula
(4,419 posts)"THE STOCK MARKET IS AT 50!... wait... THE STOCK MARKET IS AT 49!... wait... THE STOCK MARKET IS AT 48!... wait... THE STOCK MARKET IS AT 47... wait..."
ProfessorGAC
(76,482 posts)...where that dimwit refers to the Dow as dollars!
The old "tell us you know nothing about xyz, without saying I know nothing about xyz".
BaronChocula
(4,419 posts)before she's shooed out for obeying orders.
617Blue
(2,337 posts)Seems pretty huge to me
flamingdem
(40,848 posts)Jamie Dimon of JP Morgan warned about this when he said there were cockroaches hiding that worried him in private equity.
That said, this happened last week with Blue Owl too.
Maru Kitteh
(31,596 posts)So, I ask those with (what you thought were) large accounts - did you actually fall for the suggestion that your money is really yours? The global oligarchy finds your notions amusing.
angrychair
(12,145 posts)Than the Savings and Loans Scandal.
The issue, I would assume, is the same thing that always causes these things to spiral out of control is the people that rush in to grab what they can, causes others to do the same and it starts eating its own tail until is collapses.
This could just be a minor hiccup or total economic collapse. It really depends on how people react to it.
That's my two cents. I'm just a person on the intertubes.
slightlv
(7,728 posts)no matter what he says about cutting SNAP and healthcare for millions of people. He's still spending OUR money like well, like it's OURS... because he never spends his own money on anything! All these golf vacations he takes every weekend... our tax dollars pay for those -- for all the secret service around him, and all their room costs and even trump's golfing costs! Chances are, we pay for his meals, too... while he takes food out of our mouths.
And let's not even get started on the "building projects" we're going to pay for that we don't want. We don't have the money for food for the people, but damn! trump has to have a new building with his name on it someplace... and WE pick up the tab.
And then there's all these countries he's bombing and the war of choice he started in Iran, along with Bib. I don't see Bibi pumping money into humanitarian causes for the US... we only supply the money and bombs for Bibi, he owes us nothing. He seems to owe everything to trump and putin.
When you add up what he spends of OUR money on a daily basis, is it any wonder he had DOGE going in and cutting every bit of money from every department they could? He wasn't going to spend any of HIS money on this crap.
He's taking us into complete and utter Great Depression 2.0 -- and none of us are capable of handling it this time around. The number of people who could grow their own food is pretty damned slim. I'm one of them, and I've tried. Got a house surrounded completely by shades tree. Great for lowering the energy bill... not so damned great when seeds and plants need sunlight to thrive. And there are a hell of a lot more people worse off than I am. At least I'm still in my own, fully-owned house -- as long as I can keep making the tax payments... which, of course, are going up again along with the house insurance. Nope, folks... this man spends money like its water because it's not his, and no one is stopping him. We're well into national bankruptcy, IMO.
lrucks1952
(27 posts)Can you just imagine how the REPUKES would be howling if the DEMS were wasting money the way the orange man is? 40 billion to Argentina, building a new ballroom, etc...It never stops with this corrupt administration. Rape allegations, bribes, It just wont stop!!! Senators and house members from both sides!! Where are you?
slightlv
(7,728 posts)during an intense Truth and Reconciliation meeting....
I have no doubt that many are cowed by trump's evil. They've never seen anything like it before, and they fear for their families. I can appreciate that, but I do not excuse it. Not when an entire country... and all the people within that country... are suffering his delusions of grandeur. This is where I place some of our democratic reps. They've seen what happens to those who stand up to trump. I remember Nancy Pelosi tearing up the State of the Union notes, and faux-clapping at trump. And I remember what happened to her husband. I remember the representative who lost her life and her husband to trump's maga enraged minions. And those "near misses" who still have their lives, but are forever changed by what they've experienced simply by trying to be "our representatives." I weep for them... for what they went thru; for what they tried; for the loss it has meant to us.
I have no such feelings towards the repub reps. Yes, there have been a few; but even those few differ from trump only on process and not ideology. Look at Liz Cheney. She stood up to trump... lost it all, politically. But did that change how she sees the idealistic America in her mind? Did it make her suddenly more empathetic towards life? No... she's still into all politics all big money. And then we have such stalwarts as Issa (whom I detest), mullin, miller. These are devil incarnates. Nostradamus never prophesied an Anti-christ who would destroy the world. He warned of *many* anti-christs, and we're seeing a slew of them that people in their stupidity and avarice keep electing over and over again. The question becomes how do we deal with them when (and if) this enormous evil is ever turned back? And how do we do it without sullying our own souls? Right now, I have to admit, that last question is pretty low on my list of priorities. I just want them out of power and out of position or job that could ever cause harm to another living being -- human or otherwise.
None of us little folks can slide our little 401k's around with mercurial speed and ease. They can ride this out with the rest of us. If you are too big to fail, you were too big to begin with. If we all go broke, we'll be in good company.
LiberalArkie
(19,672 posts)NEW YORK, March 6 (Reuters) - BlackRock said on Friday it has limited withdrawals from a flagship debt fund after a surge in redemption requests, as investor worries mount around the $2 trillion private credit industry.
Shares of the world's largest asset manager fell 6.7% on the New York Stock Exchange, amid a broader market selloff after worse-than-expected U.S. jobs data and escalating U.S.-Israeli war against Iran.
Sentiment has soured around private credit in recent months, and retail investors are increasingly asking for their money back from funds like BlackRock's $26 billion HPS Corporate Lending Fund (HLEND), which were designed to be open to wealthy individuals.
"It should serve as a warning sign for the industry and the rulemakers about the downside of illiquid funds for retail investors," said Greggory Warren, senior stock analyst at Morningstar.
Last year's bankruptcies of a U.S. auto parts supplier and a subprime auto lender, along with the collapse of a UK mortgage lender last week, have raised questions about lending standards.
Earlier this week, mounting requests prompted rival Blackstone to lift the usual 5% redemption limit on a $82 billion fund to 7%, while the company and its employees invested $400 million to allow all requests to be met. Blue Owl bought back 15.4% of one of its funds in January.
Scrivener7
(59,295 posts)into the pot.
uncle ray
(3,337 posts)i expect this to push them into turbo mode. PE is going to ramp up what PE does. pressure is going to increase greatly on companies the fund is invested in to either perform or get shut down, in order to put that money back it BR's pockets.
and i think the 64k question is who is so anxious to get their money out so quick? is it Middle East investors that need liquidity because of this weeks events? or investors who predict companies invested in to perform badly in the trump economy? we'll most likely never know.
Scrivener7
(59,295 posts)that this problem with private equity is quarantined from the wider market. It most certainly isn't. If those who pull the strings are seeing a storm coming, that storm is big.
BlackRock investors wanted to take 9.3% out yesterday. That's a signal. So is the write-down of the Infinite Commercial Holdings loan and the Blue Owl Capital mishigas.
I think we need to strap in.
SamuelTheThird
(929 posts)Posted this once before
https://www.pbs.org/newshour/show/why-private-credit-is-creating-major-concerns-among-economists
Buddyzbuddy
(2,433 posts)BaronChocula
(4,419 posts)or should I say lambda? ƛ
OC375
(714 posts)Stock market wasn’t enough, huh?
Quanto Magnus
(1,335 posts)but of course rich people expect socialism for the wealthy... rugged capitalism for anyone else.
