<ul><li>Rohit Chopra, member of the FDIC board of directors and director of the Consumer Financial Protection Bureau (CFPB), stated that recent actions taken by the FDIC will help prevent investment managers from improperly influencing decisions made by FDIC-supervised banks.</li><li>Chopra highlighted the ownership stakes of large investment managers like BlackRock and Vanguard in both commercial enterprises and banks, noting that their involvement is often portrayed as 'passive'.</li><li>The FDIC released an amended advisory opinion stating that passive asset managers cannot have a representative on the board of directors of a bank in which they have a significant ownership stake.</li><li>The FDIC also entered into an investor passivity agreement with Vanguard, aimed at ensuring the company remains passive in its ownership of FDIC-insured banks.</li></ul>

Chopra: Regulators Must Do More to Ensure Investment Managers Aren’t ‘Improperly Influencing’ Banks

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