In an interview with FBN’s Maria Bartiromo on Wednesday, BlackRock (NYSE:BLK) chairman and CEO Larry Fink said his recent memo to the heads of major corporations was intended to push back against pressure for short-term gains.
Fink, who co-founded BlackRock in 1988, sent a letter to the CEO of every S&P 500 company, conveying BlackRock’s belief that companies should be “interested in long-term results.”
“There’s way too much discussion about short-term trade,” Fink said on Opening Bell. “We need to make sure what’s being done is for the long-term improvement of the company.”
Companies shouldn’t sacrifice investments in plants and equipment for buybacks, he added.
Fink went on to explain that Washington has failed to respond to a lackluster job market and other issues, adding that he could have written the same letter to members of Congress.
“Washington has been so guilty of not providing a clear, long-term view of getting out of these issues,” Fink said.
The BlackRock chief also said raising rates is the right course for the Federal Reserve, while banks are “much safer than they have ever been.”
Fink believes that banks should be trading at higher multiples after being “regulated out of some of the riskier businesses.”
Shares of BlackRock rallied 1.1% to $311.10 in recent trading.