By Jody Godoy and Ross Kerber
(Reuters) -US Federal Intrust Executors expressed their support on Thursday for the arguments exercised by the Republican States which accuse the asset managers of BlackRock, Vanguard and the State of conspiracy by climate activism to reduce the production of coal, two familiar sources with Reuters said.
The American Ministry of Justice and the Federal Commerce Commission have filed a declaration of interest in the case where Texas and 12 other states claim that companies have used their substantial assets in American coal companies to discourage competition.
The agencies urged the judge supervising the case to Tyler, Texas, to reject several of the arguments that the asset managers presented in their attempted rejection of the case, including that the alleged driving is an exemption for passive investors.
“This case precisely concerns the type of conduct, including concerted efforts to reduce production, which has long been convicted under antitrust laws,” agencies said in their memory.
Blackrock said that forcing asset managers to stop with coal companies harming companies accessing capital and would probably increase energy prices.
State Street said that it acts in the long -term interests of investors and that the trial is baseless.
Vanguard reiterated his previous comment according to which he would defend his story of safeguarding of yields for investors.
Reuters reported earlier Thursday that agencies were to support states’ arguments. Development marks a political setback for the best asset managers. With some 27 billions of dollars among them, BlackRock, Vanguard and State Street have been criticized for conservative republicans, many energy producing states, which say that companies are wrongly environmental and social concerns above the yields for their customers.
Blackrock, for example, faces pure and simple restrictions and prohibitions in the management of public assets in states such as Texas and Indiana about its ESG policies. There were signs of thaw in February when the company led a consortium to buy ports near the Panama strategic channel, an agreement greeted by American president Donald Trump.
The asset managers called the “half -cooked” case and say that there is no evidence that they have pressed for a reduced exit. US District Judge Jeremy Kernodle should hear arguments on the attempted asset managers to reject the case in June.
(Report by Jody Godoy and Ross Kerber; edition by Chris Sanders, Matthew Lewis and Nick Zieminski)
