BlackRock, the world's largest asset manager, just BLOCKED withdrawals.

[riversedge]

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

[sarisataka]

1. Is this the modern equivalent

Of a bank locking its doors to prevent a run?

[Buckeyeblue]

4. Yes it is. Trump has until Monday to figure this out.

Reminds me of 2008.

[riversedge]

6. Yesterday I that Trumpy was headed to the golf course this weekend--Dorel I think.

[AZ8theist]

31. How is this different from every weekend in his miserable life?

[AllaN01Bear]

10. and the grreat depression 1.0

[Joinfortmill]

44. He'll have to call Obama.

[D_Master81]

45. Well I feel terrible now

If we are hoping Trump figures something out during his coveted golf time we are screwed

[Scrivener7]

50. And there is no way he's going to figure this out. He couldn't figure his way out of a paper bag.

Nor could any of the clowns he has appointed to figure it out.

[Renew Deal]

8. It might be slightly misleading

Because according to the article below, the 5% limit already existed. It's not new.

[Ilikepurple]

53. Not exactly misleading if you consider they bumped against that limit hard.

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]

56. I agree overall

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.

[LuckyCharms]

2. This is bad. n/t

[liberalla]

3. We should expect more of this.

[UpInArms]

5. Another link

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]

29. Blue Owl was also (until recently) neck-deep in AI lending . . .

[enough]

30. Thank you, this seems like a clearer version of what's happening.

[SergeStorms]

39. So the news isn't all bad.

Anytime the Carlyle Group has a bad day is a good day for the rest of us.

[Renew Deal]

7. That's going to set off a bank run

At least for Blackrock

[Celerity]

15. BlackRock is not a bank

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/

[Renew Deal]

17. I know

[Celerity]

21. all good, I enjoy your posts RD

[Renew Deal]

58. No problem

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]

59. indeed they do, and rightfully so

[TheRickles]

25. Great link - thanks.

[Celerity]

26. yw!

[ananda]

33. OMG. It sounds like a place that makes risky investments...

for its clients.

[Renew Deal]

57. There is always risk

And some people have a higher appetite for risk

[usedtobedemgurl]

9. I have a brain injury, so I am not that smart any more.

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]

14. Here is some related info: Regulation D and savings account withdrawal limits - here's what changed

https://www.bankrate.com/banking/savings/regulation-d/



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]

16. Banks with FDIC and credit unions with NCUA coverage are protected

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]

19. Thank you.

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]

37. the FDIC only covers up to $250,000 per depositor, per ownership category

https://www.federalregister.gov/agencies/federal-deposit-insurance-corporation

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]

55. And we should not forget that Trump has considered getting rid of the FDIC

The Trump Administration is Targeting the FDIC, Putting Americans’ Financial Wellbeing at Risk - Public Citizen https://share.google/Hfi90u5mQN1cLdeLT

[SunSeeker]

18. No, it should not affect your withdrawals from your bank. Blackrock is a private equity fund, not a bank.

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]

20. Thank you so much for the information.

[SergeStorms]

41. If it topples crypto......

and hurts tRump, Musk, and every other shady S.O.B. I'm buying the first round at the pub.

[tazcat]

42. Have tbi too - it's sooo frustrating. During doge I took half my savings out and now I can't remember where

the hell I hid it! Don't have much but it's all I have being alone.

[usedtobedemgurl]

54. Oh my gosh!

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!

[markodochartaigh]

11. Golden parachutes for the c-suite,

regular parachutes for the most well-connected accredited investors, everyone else goes down with the plane.

[markodochartaigh]

12. I saw a video by Mark Thompson and David Cay Johnston

warning of possible problems with the banking system a while ago.

?si=TDZZ5aCCxKqtk3bv

[Uncle Joe]

13. Has anyone informed the top law enforcement official Attorney General Pam Bondi on this development?

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]

34. Pam immediately sent a criminal referral to the director of the FBI.

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]

43. Kash is much too busy......

lining up government funded flights to see his "girlfriend." Then he'll have to find someone to inflate her. 😉

[BaronChocula]

40. I informed her and this was her response

"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]

46. You Forgot The Part...

...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]

47. Her ignorance makes her a shoo-in for this regime

before she's shooed out for obeying orders.

[617Blue]

22. I feel like this was getting downplayed

Seems pretty huge to me

[flamingdem]

23. Cockroaches

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]

27. FFFfffffffuuuuuuuuuuuuckk.

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]

28. So more like bear stearns

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]

32. Look at how much trump is spending...

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.

[OC375]

35. Good!!!

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]

36. From MSN

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]

51. Part of what this shows is that the decisionmakers in the company make so much that they have $400 million to throw back

into the pot.

[SamuelTheThird]

38. Why private credit is creating major concerns among economists

Posted this once before

https://www.pbs.org/newshour/show/why-private-credit-is-creating-major-concerns-among-economists

[Buddyzbuddy]

48. If their clients can't liquidate, then they can't take advantage of the firesales that are going to occur.

[BaronChocula]

49. Is the "K-shaped economy" going lame?

or should I say lambda? ƛ

[OC375]

52. Private Credit

Stock market wasn’t enough, huh?