FDIC Takes Harder Look at BlackRock, Vanguard Stakes in Banks

BlackRock Inc. and Vanguard Group Inc. face another round of scrutiny from the Federal Deposit Insurance Corp., which wants to keep the large asset managers from swaying banks where they have sizable stakes.

In a letter last week to the two companies, FDIC staff sought details about the firms’ investments in banks and asked for proof that they’re operating as passive shareholders rather than activists, according to people with knowledge of the matter. The letter puts the asset managers on notice that any stake held in an FDIC-supervised bank that exceeds the threshold of 10% could trigger tougher responses ...