(Reuters) – The Federal Deposit Insurance Corp. has given BlackRock (NYSE:) a up-to-date deadline of Feb. 10 to resolve an issue relating to its oversight of the asset manager’s investments in FDIC-regulated banking organizations, Bloomberg News reported on Sunday, citing three people with knowledge of the matter.
The report said the FDIC could open an investigation into BlackRock and demand additional information from the company if it does not make enough progress to resolve the problems.
The report said the FDIC’s move came after a Jan. 10 deadline that BlackRock missed.
The FDIC declined to comment, and BlackRock did not immediately respond to a request for comment Sunday.
BlackRock asked the FDIC for an extension of the deadline to reach an agreement on how the agency will oversee the asset manager’s investments in FDIC-regulated banking organizations, according to a letter the company sent to regulators on Thursday and seen by Reuters.
The letter was the latest move in a months-long tug-of-war between the FDIC and the largest managers of index mutual funds and exchange-traded funds over the rules governing their passive investments in FDIC-regulated banks.
In tardy December, Vanguard Investments reached the terms of such a passivity agreement with the FDIC, which immediately asked BlackRock to sign a similar agreement by January 10.
BlackRock, Vanguard and Stanowa Street (NYSE:) collectively control approximately $26 trillion in assets. Since the 2009 financial crisis, investors have poured money into their low-cost index funds, catapulting these three companies into the ranks of the largest owners of most gigantic American corporations.
