Bernie Sanders has said: This is what oligarchy is about; today just 3 Wall Street firms, BlackRock, Vanguard & State Street manage $20.7 trillion in assets. These 3 firms are major shareholders in 95% of S&P 500 companies

Bernie Sanders has said:

This is what oligarchy is about. Today just 3 Wall Street firms, BlackRock, Vanguard & State Street manage $20.7 trillion in assets. These 3 firms are major shareholders in 95% of S&P 500 companies,

U.S. Senator Bernie Sanders has once again criticized the significant influence of the "Big Three" U.S. fund giants – BlackRock Inc., Vanguard Group, and State Street Global Advisors – warning that their dominance poses a threat to democracy. Sanders labeled these Wall Street firms as an "oligarchy" and expressed concern that democracy cannot withstand the current level of concentration of economic and political power. Emphasizing their substantial control, he noted that the three firms manage a staggering $20.7 trillion in assets and are major shareholders in 95% of S&P 500 companies.

This recent criticism echoes Sanders' sentiments from 18 months ago when he described the asset accumulation by these firms as "obscene." The rising market dominance of BlackRock, Vanguard, and SSGA has raised concerns about their impact on corporate governance, with Professor Martin Schmalz of Oxford Saïd highlighting that the "Big Three" control nearly a quarter of the votes of S&P 500 companies, a figure that increases to 23% for single-class companies.

Passive investing has played a significant role in the ascent of the "Big Three," with research suggesting a "millennial marketing strategy" facilitating the potential acquisition of trillions of dollars in assets under management. Critics argue that their concentration of power may compromise their ability to act in the best interest of individual investors. Despite this, the firms have implemented measures to address scrutiny, such as devolving corporate proxy voting powers to investors.