Asset Management

If BlackRock can’t short Carillion, it can’t short anything

Trade unions are right to ask questions about conflicts of interest — even if the answer is that nothing much is wrong

If BlackRock can’t short Carillion, it can’t short anything
Photo: Getty Images

Politicians have a neat little phrase to cover situations where somebody does something perfectly legal that just looks terrible: "The optics are not good."

The same is true of BlackRock's decision to short-sell — or bet against — shares in the collapsed construction group Carillion, while also managing money for its pension schemes. There is nothing technically wrong with this, but it does not look great.

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