‘That is not capitalism, that is abusing the market:’ Sen. Ted Cruz blasts BlackRock’s Larry Fink’s ‘woke’ ESG policies

Sen. Ted Cruz (R-TX) speaks during a news conference at the U.S. Capitol October 6, 2021 in Washington, DC.

Ted Cruz suggested that money managers be barred from voting on behalf of other investors in order to advance their investments.

Cruz charged during an interview with CNBC that that is abusing the market.

Cruz blamed the White House's policies for the rise in gas prices.

The senator took aim at the CEOs who have moved away from focusing on increasing profits for shareholders to taking stances on social issues like climate change to curry favor with wealthy liberals.

Climate change has become a defining factor in companies, according to a letter written by Fink.

Cruz used the support of ESG in various shareholder votes.

Does Wall Street bear some of the responsibility? Cruz said that the average price for regular unleaded gasoline was $4.70 per gallon.

Cruz said that every time you fill up your tank, you can thank Larry for the ESG pressure.

He said that what Larry Fink is doing has been unprecedented.

Cruz said that there is a problem with people voting shares of funds that invest in companies belonging to various stock indexes.

Cruz said that Larry Fink isn't using his own money to vote as a shareholder. He is voting on his politics.

Cruz said that when he walks in and stands against oil and gas, he is more welcomed at the New York Country Club.

Money managers who vote on shareholder matters based on their political interests need more scrutiny.

The senator said that capitalism is abusing the market.

The only agenda driving the proxy voting is the long-term economic interests of the millions of people whose money we manage, according to a spokesman for BlackRock.

The spokesman said that clients should be able to choose how their proxy votes are cast.

Nearly half of our index equity assets under management can choose how their proxy votes are cast.

While that is an industry first, we see it as just the beginning. democratizing investing for millions of Americans has been the result of index investing.

In his annual letter to CEOs, he wrote that shareholder capitalism is not about politics. It isn't a social or ideological agenda. It is not.

capitalism is driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities that your company relies on to prosper. This is the power of capitalism.