President Donald Trump lauded BlackRock CEO Larry Fink during a speech at the World Economic Forum, calling him a modern Midas whose touch turns everything to gold. This endorsement comes despite Fink's past advocacy for climate action and diversity initiatives, which have drawn criticism from some Republicans. The praise highlights an evolving relationship between Trump and the investment leader.
President Donald Trump expressed high regard for Larry Fink, the CEO of BlackRock, in a speech at the World Economic Forum on Wednesday. "Everything Larry touches turns to gold," Trump said, crediting Fink with making the forum successful.
This admiration is not entirely surprising given recent collaborations. BlackRock, under Fink's leadership, was the first firm to assist in efforts to reclaim the Panama Canal for the United States. Additionally, Trump is reportedly considering BlackRock executive Rick Rieder as a potential replacement for Federal Reserve Chairman Jerome Powell.
However, Fink's history contrasts with the Trump administration's stance on certain issues. At the 2020 World Economic Forum, Fink appeared on stage wearing a scarf illustrating rising global temperatures over 150 years and warned of climate change as an imminent threat to the world and financial system. In his 2020 annual letter to shareholders, he described a "fundamental reshaping of finance" and stated that "every government, company, and shareholder must confront climate change." He emphasized forcing behavioral changes through BlackRock's voting power in shareholder decisions, saying, "I have only one power... And I’m going to use that power heavily and that is the power of the vote."
BlackRock manages trillions in passive funds, granting significant influence over corporate policies. In his 2021 letter, Fink urged companies to produce sustainability reports covering environmental risks and workforce diversity, equity, and inclusion (DEI). He argued against rigid separations in environmental, social, and governance (ESG) frameworks, noting interconnections like climate change's impact on low-income communities.
Fink's approach shifted in recent years. In 2024, he indicated neutrality in the presidential race, claiming both Donald Trump and Kamala Harris would benefit Wall Street and that BlackRock works with both administrations. By 2025, his annual letter omitted references to climate change and DEI, instead advocating large-scale nuclear energy investment: "Wind and solar alone can’t reliably keep the lights on."
Despite apparent alignment, skepticism persists among Republicans. The White House is considering an executive order to restrict passive fund managers' shareholder voting. Representative Marlin Stutzman (R-IN) called for congressional limits on firms like BlackRock, Vanguard, and State Street to curb political influence. Securities and Exchange Commission Chairman Paul Atkins warned of regulatory action against overreaching asset managers. Vice President JD Vance, in 2023, highlighted GOP divisions, stating one faction sees BlackRock as value-creating while he views it as engaging in "illegal and immoral conduct."
Recently, Fink reiterated concerns about wealth inequality in his World Economic Forum speech: "Since the fall of the Berlin Wall, more wealth has been created than at any time prior in human history... But in advanced economies, that wealth has accrued to a far narrower share of people than any healthy society can ultimately sustain."
